Apple Raises $17 Billion in Largest Corporate Bond Sale Ever
Apple sold $17 billion worth of bonds late Tuesday in the largest sale of corporate bonds ever, part of a plan to increase its share buyback program and boost its dividend.
Apple sold $17 billion worth of bonds late Tuesday in the largest sale of corporate bonds ever, part of a plan to increase its share buyback program and boost its dividend.
Companies that have piled up cash over the past few years are finding one good use for it: Repurchasing their own shares. January alone saw $57 billion in buybacks, compared with $357 billion for all of 2010. While buybacks don't add value, they do give investors more options.
As Bank of America continues to cope with fallout from the housing and mortgage crisis, the financial institution may have to pay some year-end employee bonuses in the form of stock because of a possible cash shortfall related to its buy-back of stock from the federal government.
In a sign that consumer spending may be on the rebound, Visa on Wednesday reported its fiscal fourth-quarter profit jumped 51% from a year ago. But shares fell after the company released disappointing guidance for the next year.
IBM shares soared 69 cents past their record high, set during the dot-com boom, to reach $139.88 per share before closing at $139.66 per share Monday. The rally reflects a slight market upswing and news of strong quarterly earnings from a competitor.
So far in 2010, U.S. companies have announced stock buybacks totaling more than five times as much as they had at this time last year. But evidence suggests that such buybacks a more likely to be money losing propositions -- except for the CEOs whose bonuses they artificially inflate.
Yahoo's board gave the go-ahead for massive stock repurchases over the next three years. It's yet another attempt by CEO Carol Bartz to appease investors and get the stock, which has largely remained stagnant in the low- to mid-teens, going again.





