Apple will access debt markets to fund enhanced capital return program

By Toni Weeks

San Luis Obispo, Calif., April 27 – Apple Inc. will continue to access the domestic and international debt markets to fund its expanded capital return program, according to a company press release.

The company said that its board of directors has authorized an increase of more than 50% to its program to return capital to shareholders. With the expanded program, Apple plans to use $200 billion of cash by the end of March 2017.

As part of the revised program, the company has increased its share repurchase authorization to $140 billion from the current $90 billion level.

The company also expects to continue to net-share-settle vesting restricted stock units.

Finally, the board has approved an increase of 11% to the company’s quarterly dividend, representing the third dividend increase in less than three years. A dividend of $0.52 per share will be payable on May 14 to shareholders of record as of close of business on May 11, the release noted.

Since the inception of the capital return program in August 2012 through March, Apple has returned over $112 billion to shareholders, including $80 billion of share repurchases.

The board and the management team will continue to review each element of the capital return program regularly and plan to provide an update on the program on an annual basis.

The computer and mobile communications device company is based in Cupertino, Calif.

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