Apple Raises Dividend; Launches $110 Billion More in Buybacks

Image: Apple’s fiscal second quarter of 2024 didn’t disappoint.

By Brian Nelson, CFA

On May 2, Apple (AAPL) reported better-than-expected results for its second quarter of fiscal 2024. Both revenue of $90.8 billion and quarterly earnings per diluted share were modestly above consensus. These days, Apple has become very shareholder-friendly, with the firm upping its dividend payout and launching a massive incremental buyback program. Here’s what management had to say about the quarter:

Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services. During the quarter, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month. As always, we are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us.

Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new EPS record for the March quarter. Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $110 billion for share repurchases. We are also raising our quarterly dividend for the twelfth year in a row. 

Apple’s massive buyback announcement stole the show, but on a fundamental basis, things are looking on the up and up for iPhone sales, despite a heightened competitive environment in China. According to reports, Apple CEO Tim Cook told CNBC that “overall sales would grow in the ‘low single digits’ during the June quarter.” We’re huge fans of Apple’s Services business, the expected pick-up in iPhone sales coupled with a strong showing with respect to returning cash to shareholders.

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