Apple’s recent $110 billion stock buyback has put it at the top of the list of companies making the largest stock buybacks in the S&P 500. Over the past 12 months, Apple has bought back a staggering $84.5 billion in stock, surpassing all other companies in the index by a wide margin.
Since 2013, Apple has been actively buying back its stock, resulting in a significant reduction in its share count from 26.2 billion to 15.3 billion today, a decrease of 41%. The company has not only dominated total buybacks in recent years but has also executed the largest quarterly buybacks in history.
Buybacks have become increasingly popular among companies as a way to return cash to shareholders. In 2023, corporate America allocated $765 billion to buybacks, compared to $597 billion for capital expenditures and $588 billion for dividends. As we look ahead to 2024, it is expected that buybacks will continue to increase with an estimated $925 billion anticipated for that year. This trend reflects the flexibility and appeal of buybacks as a means of returning cash to shareholders, making them a preferred method over traditional dividends.