Brilliant financial engineering: Apple borrows @ 2%. buys back shares that pay 3% dividend. save 1%. AND interest tax deductible! Puts a bottom to the falling share price. Improves the yield to 8 %. 5% with buyback and 3 % dividend. Still has the same amount of cash left for investments and strategic acquisitions.
Can anyone beat this?
Sentiment: Strong Buy
So tired of the stupid 8% yield comments. If the yield was really 8% at 417 a share the stock would be at $600 and climbing not $417. EPS is set to decline 20-25% next quarter yoy, buying back a few billion shares between now and then is not going to come close to off setting that.
Barrons made that 8% junk up because Apple was their best bet for 2013, instead it tanked, and the lemmings on here grab onto it like it means something.
Duh......of course I can, Bert and Ernie are better with numbers than you...........The buyback does nothing for the dividend....If you actually are #$%$ I aplologize and applaud the effort.
also management said not much more in the way of dividends going forward. 100% focused on share retirement with $50 billion annual free cash flow capital allocation now. so look for a float under 100 million by 2017.
thanks for the heads up with what do with all that cash warren.