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Apple (AAPL) is likely to more than double its dividend this year, says Morgan Stanley's Katy...

Apple (AAPL) is likely to more than double its dividend this year, says Morgan Stanley's Katy Huberty after talking to CFO Peter Oppenheimer. Corporate Finance 101: She suggests the company can get around the issue of cash held overseas by funding payouts with low-interest debt rather than repatriation. Shares +0.7% premarket.
Comments (33)
  • better to borrow at these rates than bring cash back... that tells you something doesn't it...
    22 Feb 2013, 08:40 AM Reply Like
  • scary huh
    22 Feb 2013, 09:39 AM Reply Like
  • Of course this is the answer to returning money to shareholders. Not the iPref nonsense of recent days.


    Apple is a solid investment both from an income perspective and from a growth perspective, especially given its current heavily oversold territory.
    22 Feb 2013, 08:46 AM Reply Like
  • 6% dividend, as stated in the link, would surprise me.
    22 Feb 2013, 08:48 AM Reply Like
  • It was stated as "6% total yield", which is not a 6% dividend.
    22 Feb 2013, 11:31 AM Reply Like
  • Double would be 4.6% at this share price. It might be possible to borrow outside the US and pay back with foreign funds and avoid the tax of repatriation. I would prefer a stock buy back funded the same way. They may do a bit of both.
    22 Feb 2013, 09:25 AM Reply Like
  • Why doesn't Obama fund an asset repatriation program wherein that capital can come back tax free to invest in business and the like on the home front? We'll get a lot more tax revenue by unlocking those over seas dollars and funding jobs.


    And why doesn't Apple take the lead in the Green Revolution. There is the next big thing.
    22 Feb 2013, 09:26 AM Reply Like
  • could you expand on the 'green revolution' are you referring to renewable energy and recycling?
    22 Feb 2013, 09:29 AM Reply Like
  • Dean - I totally agree. A "tax" holiday would bring in at least 500 billion back to the US. Even if that money is mostly paid out to shareholders, that will create income which will spread around the economy. As it is, no one even talks about these companies bringing back the money and paying taxes. So, the "loss of tax revenue" is only theoretical.
    22 Feb 2013, 03:49 PM Reply Like
  • Move Apple to Ireland. Repatriation issue gone.
    22 Feb 2013, 09:31 AM Reply Like
  • Like Cisco forty billion inIreland 6 new manufacturing facilities....John Chambers very outspoken on repatriation....Obama put your ears on....
    22 Feb 2013, 09:45 AM Reply Like
  • So repatriate! For God's sake! Talk about responsibility; paying taxes is part of the deal for doing business in and benefitting from our laws and system of government. Why does Apple get a free ride? The law says "pay the taxes"; so pay the damn taxes! These cutsie financial shenanigans will eventually backfire. If the government forgives Apple's taxes, they'd better damn well forgive mine too!
    22 Feb 2013, 09:56 AM Reply Like
  • lol that was a cute outburst John... now that you are calmed down businesses sole reason for existence is to make money... repatriating cash at an absurd tax rate does not fall within that guideline.


    I'm pretty sure that if the government had money overseas they wouldn't repatriate it either... of course they can just wave their own fees so its irrelevant...
    22 Feb 2013, 10:05 AM Reply Like
  • John - the problem from a corporate perspective is : AAPL sold products in Indonesia (example), and paid taxes there. Now the money goes into an Indonesian bank account. Now US wants them to pay taxes again just to move the money from one bank in Indonesia to a bank in CA? That's the problem with the corporate tax code in the US. It creates artificial barricades which makes companies mis-allocate resources and stockpile over-seas cash.
    22 Feb 2013, 03:53 PM Reply Like
  • Tell that to Mitt Romney !
    22 Feb 2013, 06:17 PM Reply Like
  • But Apple is playing by the (tax) rules.
    Don't hate the players.
    22 Feb 2013, 09:25 PM Reply Like
  • Hate the game.
    23 Feb 2013, 02:54 PM Reply Like
  • There are very many good ideas being floated around for Apple to dispense some of their cash to their shareholders on a regular basis.


    We're paying some pretty good money to the present Apple management for running this company and I'd like to have seen their ideas for handling this Cash Horde (may I say problem) situation before now - sign me: "Not happy with Apple leaders to date....."
    22 Feb 2013, 10:05 AM Reply Like
  • Interesting. Not a peep about this on CNBC.
    22 Feb 2013, 10:18 AM Reply Like
  • God no. Joe Terranova said he'd stay away from it till it goes higher! They'll love it at 510.


    And some other genius on the same clip said he wouldn't touch it. Until it got to 440! Then its a buy. At the time it was at 445. Those guys are buffoons.
    22 Feb 2013, 02:16 PM Reply Like
  • Apple Inc. must get rid of the volatilty of their market cap. Asap.
    The swing trading of shorters, hedge funds, and other pirates must be strongly discouraged... These kinds of ownership of AAPL are perverse ones. Why not promote long positionning among sharehoders with the implementation of a special monthly dividend program for shareholders as long as 'x' months? ... along with the regular dividends for classical insecure-swinger-gambl... people?
    22 Feb 2013, 10:46 AM Reply Like
  • It was not all that long ago Apple went hat in hand to its competitors to secure funding to move ahead with plans to revamp its product line. What came of that was the Bondi Blue iMac and a revolution in computing style. The mid-2000's saw a wave of new devices from a now-flush Apple, and many published references to the management team's supply-line savvy at paying in advance for materials and manufacturing capacity to ensure production levels.


    We have heard Cook say on several occasions (shareholder meeting in 2012, Peter Jennings inteview same year) that Apple plans to revamp everything in their product line in 2013. You don't start a remodel job without a box of cash or miles-long line of credit. Apple has containers of cash in all the right places for this undertaking. Manufacturing ramp-up takes time. I'm well satisfied with the current pace set by management.
    22 Feb 2013, 10:46 AM Reply Like
  • If aapl was taxed at 35 percent of 90 billion. that is currently overseas plus or minus a few billion would put about 26 billion in the gov't coffers
    ...a federal debt table published by the Office of Management and Budget that listed a deficit of $11.876 trillion at the end of 2009. subtract that from the debt of $13.787 trillion projected for the end of 2010. That left $1.911 trillion. Dividing that by the number of seconds in a year gives a national debt that is increasing by $60,597 per second, and it takes just under 50 seconds to add $3 million to the debt. staggering , so in about 60 days the present administration would burn thru it.. maybe they could buy some more 25,000 dollar toilets..
    22 Feb 2013, 10:51 AM Reply Like
  • Why doesn't Apple split the Co. into APPLE and APPLE INTERNATIONAL... give stockholders free shares in AAPL International. Philip Morris Co. did this. Then the Div. can be paid from Apple International and no US Corp. Inc. Tax.
    22 Feb 2013, 10:53 AM Reply Like
  • interesting idea Drew, wonder if it would work out for them or if the company would suffer from having the two separated?
    22 Feb 2013, 10:56 AM Reply Like
  • Should work in theory. But the politicians would probably veto this because if AAPL were allowed to do it then other companies would do the same for the sole objective of avoiding tax. Many other big cap companies also have tons of money kept overseas and the U.S. Treasury would not like to lose this huge chunk of money in the form of tax revenue. Another method is to compensate AAPL investors with one-time stock dividends instead of cash dividend although this may have a diluting effect on the share price in the short run.
    22 Feb 2013, 11:56 AM Reply Like
  • Ernst & Young has an Ernst & Young International to collect its money in Cayman Islands
    22 Feb 2013, 06:27 PM Reply Like
  • what's with the immediate selling against any uptick???
    there is 13F evidence of Hedgefunds selling shares - manipulating prices - in cahoots with Einhorn. It's time to lay open the hedgefund clandestine doings on behalf of the fatcats and at the expense of the average investor.
    22 Feb 2013, 11:50 AM Reply Like
  • I look for Apple to raise dividend to .035 x 550 = 19.25 which would be 4.3% at $448 PS. That would return $18.6 billion a year and they could then increase stock buyback before announcing deal with Intel to produce An chips at 22nm.
    22 Feb 2013, 11:51 AM Reply Like
  • Boy some people's comments are nuts. Thank God Apple is run by adults with brains.
    Apple paying an outrageous 35% tax to pay me more in dividends is absurd and irresponsible.
    I bought more shares of AAPL seeking capital appreciation. I was not seeking income from dividends, but I'll take them if they give them.
    The USA has many dimwits like Obama and his ilk who think that taxes don't influence behavior. It does.
    The USA should copy the tax code in Switzerland and stop the class warfare and hand wringing.
    22 Feb 2013, 01:16 PM Reply Like
  • Believe me, do you call them "investors" if they buy Apple stock a day before the ex-dividend date, then sell it a day later just to get the dividend? They sound more like traders to me. I just don't get it - Wall Street is trashing the Government for increasing its national debt year after year; yet it trashes a company that is fiscally conservative! Do we realize now how America got itself in so much debt?
    22 Feb 2013, 02:34 PM Reply Like
  • We can all sit back soon and watch the SOBs take down Google. You can see it coming. The stories will get planted. Several analysts will express doubt. Cost per click metrics and competition from Yahoo will come up. Cramer's daughter will say she only uses Bing and Melissa Lee will make a funny face when she talks about Google. A couple of false rumors will get started. And then on cue, the selling will begin. A six month series of roller coaster shorts and pump and dumps until the big boys flush the retail suckers hanging on to their Google shares who are convinced the stock will come back to that magic $800 or $900 price. Or at whatever point the hedge fund criminals decide to take it down. What a country!
    22 Feb 2013, 03:40 PM Reply Like
  • rperson you nailed it....
    22 Feb 2013, 08:36 PM Reply Like
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