Ten-Year Tally: AAPL Hands Back $835 Bil to Shareholders

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Trefis
AAPL: Apple logo
AAPL
Apple

In the last decade, Apple (AAPL) has returned a staggering $835 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.

As it turns out, AAPL has returned the highest amount to shareholders in history.

AAPL S&P Median
Dividends $140 Bil $2.8 Bil
Share Repurchase $695 Bil $5.2 Bil
Total Returned $835 Bil $8.8 Bil
Total Returned as % of Current Market Cap 24.3% 25.8%

Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more companies like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.

Top 10 Companies By Total Shareholder Return

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Total Money Returned As % Of Current Market Cap via Dividends via Share Repurchases
AAPL $835 Bil 24.2% $140 Bil $695 Bil
MSFT $364 Bil 9.6% $165 Bil $199 Bil
GOOGL $343 Bil 14.0% $12 Bil $331 Bil
XOM $207 Bil 44.1% $144 Bil $63 Bil
WFC $206 Bil 80.9% $59 Bil $147 Bil
JPM $168 Bil 20.5% $0.0 $168 Bil
META $167 Bil 8.8% $6.4 Bil $160 Bil
ORCL $163 Bil 24.7% $34 Bil $129 Bil
JNJ $157 Bil 36.6% $104 Bil $52 Bil
CVX $149 Bil 56.2% $97 Bil $53 Bil

For full ranking, visit Buybacks & Dividends Ranking

What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Companies like META and MSFT are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.

That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for AAPL. (see Buy or Sell AAPL Stock for more details)

AAPL Fundamentals

  • Revenue Growth: 6.0% LTM and 1.8% last 3-year average.
  • Cash Generation: Nearly 23.5% free cash flow margin and 31.9% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for AAPL was -0.9%.
  • Valuation: AAPL trades at a P/E multiple of 34.6
  • Opportunity vs. S&P: Compared to S&P, you get a higher valuation, higher LTM revenue growth, and better margins

 

AAPL S&P Median
Sector Information Technology
Industry Technology Hardware, Storage & Peripherals
PE Ratio 34.6 23.9

LTM* Revenue Growth 6.0% 5.1%
3Y Average Annual Revenue Growth 1.8% 5.2%
Min Annual Revenue Growth Last 3Y -0.9% -0.3%

LTM* Operating Margin 31.9% 18.7%
3Y Average Operating Margin 30.8% 17.8%
LTM* Free Cash Flow Margin 23.5% 13.0%

*LTM: Last Twelve Months

That’s a good overview, but evaluating a stock from an investment perspective involves much more. That is exactly what Trefis High Quality Portfolio does. It is designed to reduce stock-specific risk while giving upside exposure.

AAPL Historical Risk

That said, Apple isn’t immune to big sell-offs. It fell about 80% during the Dot-Com Bubble, 61% in the Global Financial Crisis, and 31% in the inflation shock recently. Even smaller drops, like the 38% in 2018 and 31% during the Covid pandemic, still hit hard. Strong fundamentals matter, but when the market turns, Apple can take a serious hit too.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read AAPL Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.