Apple just fueled everyone's biggest fear about how companies are going to use their extra tax reform cash
https://finance.yahoo.com/news/apple...134750037.html
When President Donald Trump's massive tax plan was announced, experts immediately feared the worst about how companies would spend the additional cash they'd soon have for deployment.
They figured corporations would choose to enrich shareholders through buybacks and dividends, rather than reinvest in their own businesses or create jobs.
And their fears were valid. Back in 2004, the last time a tax holiday occurred, companies used a whopping 80% of their proceeds on share repurchases. This time around, Bank of America Merrill Lynch expects just 50% of it to be used for buybacks — but the jury is still out.
Apple didn't help matters much on Tuesday, when it said it'll buy back an additional $100 billion in stock — an eye-popping number that marks the biggest increase on record for a company already known for their history of massive repurchases.