Apple (AAPL) Shares Move Up as Fixed Income Investors Clamor for Apple Bonds

Shares of Apple, Inc. (NASDAQ: AAPL) are moving higher Tuesday on reports that fixed income investors are clamoring for Apple bonds. The orderbook for the bonds is already oversubscribed at over $40 billion, according to the latest reports from Reuters.

Apple intends to use the net proceeds from the sale of the notes to repurchases common stock and payment of dividends under its recently expanded program to return capital to shareholders. On April 23, 2013, Apple announced that they increased their existing share repurchase program authorization from $10 billion to $60 billion and raised their third quarter 2013 cash dividend by 15%.

Goldman, Sachs & Co. and Deutsche Bank Securities are leading the offering of various floating and fixed rates notes that expire from 2016 to 2043.

When all is said and done, the 2.8 percent dividend yield on Apple's common shares may look attractive versus the bond offering.

Shares of Apple are up 1.44 percent to $436.40 mid-day.

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