"Business titles like Apple and Walmart are under attack to buy back billions of dollars in stock, while apparently skimping on investment, but obviously the critics have it all wrong: The companies that buy back the most stocks also invest the most in the future," writes Jeffry Bartash for MarketWatch. "Apple announced plans to buy back $ 100 billion in stock last year, but also invested nearly $ 17 billion in 2018, and plans to invest $ 14 billion in 2019."
"The biggest corporate tax cuts under President Trump for 31 years certainly helped, Cicione said, but he pointed to the increase in stock buybacks ahead of them. Cicione said the largest and most successful US companies have managed to increase what is called free cash flow. the difference between what a company receives and pays in cash, even faster in recent years due to increased sales and sound management, allowing them to return money to shareholders and increase their investment. "
" Critics do not see it … Earlier this month, Democratic presidential candidate Bernie Sanders and Senate minority leader Chuck Schumer said they would make a proposal for sharply limiting stock repurchases unless companies invest more, especially in the wages and benefits of the employee, "Bartash writes. "[Yet] hourly wages and total compensation for all US workers are growing more than 3% a year ̵
"If companies continue to generate large amounts of extra money, he said they" I'll just switch from buying back stocks to giving shareholders greater annual dividends or special onetime dividends, "Bartash writes." If companies generate that much money, they will find other ways to return it to the shareholders, he said. "
Read more in the whole article here.
MacDailyNews Take: While We Want to See More in the form of Dividends for AAPL shareholders, we would rather see that Apple continues to effectively reduce the number of outstanding AAPL shares that over time generally drive the stock price higher. That said, we expect Apple to increase its dividend for shareholders later this spring.
Interns : Roll out the dish! Cheers, everyone!
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