By How Much Will Apple Boost Its Buyback Program?
Amid the COVID-19 pandemic and the related economic fallout, buyback programs have become increasingly controversial, as many companies are struggling financially after spending years repurchasing stock. Many have suspended buyback programs in order to preserve cash that will be instrumental in surviving a public health crisis that has brought much of the global economy to a halt. In fact, the coronavirus stimulus bill prohibits any company taking government money from repurchasing shares until a year after loans are paid back.
However, many of those broad criticisms don't quite apply to Apple (NASDAQ: AAPL) for a few simple reasons: The company has so much money that it can avoid mass layoffs (Apple is still paying hourly retail workers even though they're unable to work); it won't need to be bailed out by the government; it continues to invest heavily in research and development (R&D) for future products; and it still has enough cash left over to repurchase shares in line with its capital allocation strategy.
Image source: Apple.
Source Fool.com
