Apple became the first publicly-traded company in the world to reach $3 trillion in market value.
The company’s shares were up nearly 3% on Monday, reaching an all-time high of $182.88, which was higher than the $182.85 per share value the company needed to be worth $3 trillion. The company closed the day just shy of the $3 trillion mark.
The growth in Apple’s stock value comes from the company’s relentless effort to buy back shares. Last year, Apple spent $85.5 billion on repurchasing its shares and $14.5 billion on dividends, making the company the largest repurchaser of shares among the S&P 500.
Share buyback programs are key to boosting stock prices as they reduce stock inventory in the market, thereby yielding higher returns to the investor. Fewer shares also result in higher earnings per share, which in turn makes the company more valuable to investors.
“The recent rally in shares in part may reflect investor expectations of relatively stable demand and continued strong cash flows and capital return for a stock that has performed largely in-line with the market,” Bank of America Securities analyst Wamsi Mohan said last month.
Apple began paying quarterly dividends and repurchasing its shares in March 2012, according to CNBC. Since then, the company has spent more than $467 billion on its buyback program, becoming the “poster child” for share repurchase programs.