Apple Sells $5.5 Billion of Bonds to Fund Buybacks, Dividends

$Apple (AAPL.US)$ tapped the US high-grade bond market Monday with a $5.5 billion sale in four parts.
The longest portion of the offering, a 40-year security, yields 118 basis points over US Treasuries, down from initial price discussions in the 150 basis points range, according to people familiar with the deal. The order book for the sale peaked at more than $23 billion, a person with knowledge of the demand said.
Apple consistently borrowing tens of billions of dollars annually is due more to its confidence in expanding cash flow than operational needs
For Apple, buybacks have become a central part of the investment rationale. Investors like buyback programmes because it reduces the number of shares in the company, which boosts earnings and the share price.
Apple began paying quarterly dividends and buying back shares in March 2012. From then until the summer of 2021, Apple has spent more than $467 billion on share buybacks, according to data provided by S&P Global Markets Treasury Intelligence.