Tuesday, April 29, 2014

Apple's Capital Program Is Not Financial Engineering


Summary

  • Apple’s capital program enhances shareholder returns.
  • Despite returning record amounts to shareholders, the cash balance remains extremely high.
  • Research shows that high net payout yield stocks outperform the market.
For whatever reason, a company can't repurchase stock or execute a stock split without market participants claiming some level of financial engineering these days. The high profile announcement by Apple (AAPL) along with the Q214 earnings report brought out all sorts of sarcasm, but is it justified?

Read the full article at Seeking Alpha.


Disclosure: Long AAPL. Please review the disclaimer page for more details. 



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