Apple currently has a “problem” that many companies are looking at – too much cash. For AAPL investors, this means that Apple will start a massive buyback and a healthy dividend in the coming years.
Apple reported cash flow from operations of $28.6 billion for the second quarter of fiscal 2023, which ended April 1. Apple spent $19.1 billion to repurchase 129 million shares of AAPL stock and paid $3.7 billion in dividends to investors.
Tech media outlet Morningstar sees the abundance of cash as a good thing on the one hand, which means the company has enough flexibility to innovate and stay competitive by investing in it, and on the other hand, the more cash a company has on its balance sheet and just collects interest on it, which is often seen by investors as an inefficient use of capital.
Apple currently has a “problem” that many companies are looking at – too much cash. For AAPL investors, this means that Apple will start a massive buyback and a healthy dividend in the coming years.
Apple reported cash flow from operations of $28.6 billion for the second quarter of fiscal 2023, which ended April 1. Apple spent $19.1 billion to repurchase 129 million shares of AAPL stock and paid $3.7 billion in dividends to investors.
Tech media outlet Morningstar sees the abundance of cash as a good thing on the one hand, which means the company has enough flexibility to innovate and stay competitive by investing in it, and on the other hand, the more cash a company has on its balance sheet and just collects interest on it, which is often seen by investors as an inefficient use of capital.
As of quarter-end, Apple had $166 billion in cash on its balance sheet. After taking into account about $110 billion in debt, net cash totaled $57 billion.
Owners of Apple stock have been the biggest beneficiaries of this “trouble. Since the beginning of 2013, the company has returned nearly $732 billion to investors through stock buybacks and dividends.
During that time, Apple shares have soared 952.5 percent, compared to a 180.4 percent increase in the Morningstar US Market Index.