In Apple's (AAPL 0.64%) most recent quarter, the company managed to grow EPS by 15% on net income growth of 7%. How did the tech giant leverage net income so much? By repurchasing shares. While it's not secret that repurchasing shares at the right price can build shareholder value, the significance of Apple's leverage in Q2 illustrated just how effective its share repurchase program has been for investors. And given the recent run-up in the stock price, it appears the market is pleased.
Fortunately, the benefits of leverage that come from Apple's share repurchase program should stick around for some time. Not only do Apple's current lucrative levels of free cash flow appear to be sustainable, but the company also recently boosted its repurchase program by $30 billion.
Senior Fool technology specialist Daniel Sparks explains in the following video why this leverage is one of the fundamental reasons Apple stock is a great bet for long-term investors.
