Apple Will Discuss What to Do With Its $100 Billion Cash

Apple likely to announce a dividend

Apple likely to announce a dividend

Apple Inc., the world’s most valuable company, plans to discuss its $100 billion in cash and investments in a conference call and is likely to announce a dividend. Just days after its stock touched $600 per share, a short press advisory was issued by Apple, saying it would hold a conference call to discuss the outcome of discussions about its cash balances. The move comes as investors have hollered for the company to return some of the money to shareholders.

Apple’s Deep Thinking About Its $100 Billion Cash

Chief Executive Timothy D. Cook said at Apple’s annual shareholder meeting in February that the company had been thinking about its cash ‘very deeply,’ and is actively discussing strategies for managing it with the company’s board. He said, “It’s a lot. It’s more than we need to run the company.”

Apple, the iPhone and iPad-maker, is likely to spend about $14 billion of it’s nearly $100 billion cash hoard. Analysts believe that this has been a record for a public company to get it a healthy and modest dividend yield in the 2.5 percent area. It is highly unusual for a company of this age, especially while it is more than three and a half decades old, to been on a growth spurt.

The success of new products like the iPhone and iPad has boosted both profits as well as revenue; during the holiday quarter. Apple issued shareholder dividends during an earlier chapter in its history, stopping in December 1995.

A Plan for the Company’s Cash Other Than Letting it Accumulate in the Bank

Since Timothy D. Cook took over the leadership of the company last fall, he and other executives have signaled their willingness to consider a plan for the company’s cash other than letting it accumulate in the bank. Apple executives said, “For months we were in discussions with the company’s board members about developing such a plan”.

Brian Marshall of ISI wrote in a note to clients Sunday following the Apple announcement, “We believe a dividend will drive an incremental $4.5 billion in stock purchases from top 20 dividend mutual funds and ETFs assuming Apple is a new 2.5 percent position. We believe Apple could become the highest yielding stock in our coverage universe with a 2.5 percent dividend followed by Hewlett-Packard at 2.0 percent, Cisco at 1.6 percent, IBM at 1.5 percent”.

Well, but not that many believe the same fate will befall Apple. Analysts believe Apple can have its dividend and its growth story too as it is just starting to penetrate emerging markets significantly and may release a revolutionary TV product later this year.

 

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Facebook

Leave a Reply

Your email address will not be published.

Recent Posts

Cryptocurrency Market Updates: Bitcoin Could Hit $500,000 Per Coin

Cryptocurrency Market Updates: Bitcoin Could Hit $500,000 Per Coin

On March 15, Novogratz went so far as to predict that the Bitcoin future price will reach half a million dollars per coin by 2027. He made this statement at the Bitcoin 2022 confer
6 hours ago
Klarna CEO Uses Pre-Recorded Message For Laying Off Employees

Klarna CEO Uses Pre-Recorded Message For Laying Off Employees

Managers and HR personnel must be coached on how to compassionately convey the message as it is one of the most difficult conversations an individual can have. Open and honest comm
8 hours ago
China Might No Longer Be An Apple Manufacturing Country

China Might No Longer Be An Apple Manufacturing Country

The iPad manufacturer has previously sought to remove China as the main Apple manufacturing country. Trade tensions and a strict Covid-19 policy has previously resulted in supply c
1 day ago
D.C. Refuses to Let Zuckerberg Wash His Hands Off Cambridge Analytica

D.C. Refuses to Let Zuckerberg Wash His Hands Off Cambridge Analytica

In the same year, Racine had sued Meta, then known as Facebook, for failing to protect user privacy and deceiving them about how much data is collected and how it was used. The Att
1 day ago
Electronic Arts Shops Around For a Buyer

Electronic Arts Shops Around For a Buyer

However, Byers sheds light on the most recent Electronic Arts news saying, “Several sources familiar with these talks say EA has been persistent in pursuing a sale, and has only
2 days ago
EV Adoption Rates Helps Bring Down Global Oil Demand

EV Adoption Rates Helps Bring Down Global Oil Demand

Although electric car adoption rates are heartening, it is the electric two- and three-wheeler segment that has brought about a major shift in demand for oil. Especially popular i
2 days ago