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Apple inventory has confronted headwinds in 2022 however remains to be up 26% from this time a 12 months in the past.
Dreamstime
Apple
’s
quarterly earnings stories incessantly hog the highlight on days after they drop. The world’s largest publicly listed firm has the power to pull the remainder of the inventory market—and indexes just like the
S&P 500
—round with it.
When the tech large stories outcomes later this month, traders shall be eyeing income and revenue, as normal. However additionally they shall be centered on the capital allocation plans of tech large Apple (ticker: AAPL).
Confronted with a steadiness sheet flush with money, the corporate is prone to increase share buybacks in addition to elevate its dividend, Citi analyst Jim Suva stated in a report on Tuesday. The next dividend and accelerated repurchases ought to, in concept, make the corporate a extra engaging funding and assist raise its inventory value.
Citi expects Apple to announce an incremental inventory repurchase program of $80 billion to $90 billion when the iPhone maker stories earnings on April 28. The corporate might also elevate its dividend by 5% to 10%, Suva stated.
A brand new buyback program would come on the heels of $81 billion deployed in repurchases throughout the final 12 months. Apple reported greater than $37 billion in money or money equivalents as of the tip of 2021.
Apple inventory rose 2.2% on Tuesday, in keeping with the tech-heavy
Nasdaq
index. The inventory is down 4.6% up to now this 12 months as Apple, like the remainder of the tech sector, faces headwinds from an surroundings of tightening financial coverage. However Apple has managed to outperform its friends this 12 months; the Nasdaq is down 14% by comparability. Apple shares are nonetheless up 26% from this time final 12 months.
Write to Jack Denton at [email protected]
