While Apple (AAPL +0.1%) continues its "active discussions" about returning more cash, the...


While Apple (AAPL +0.1%) continues its "active discussions" about returning more cash, the Street's expectations have grown: a Bloomberg poll of six analysts found an average forecast for a 56% increase in the company's quarterly dividend to $4.14/share, or $15.7B/year. That would be good for an annual yield of 3.7%. (Quartz report)
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Comments (15)
  • Stephen J Melnykevich
    , contributor
    Comments (1322) | Send Message
     
    First, a poll of 6 analysts is such a small pool to draw data from.

     

    Second, lets say that many analysts share that forecast. It is really very high, because that 15.7B/year would have to be drawn from income generated going forward of which was already taxed and available (i.e. not drawn from the larger 100B+ overseas).

     

    As a stock holder I would obviously welcome that kind of return but I see it unlikely. They will likely raise the dividend and accelerate share repurchase.
    18 Mar 2013, 10:05 AM Reply Like
  • XRTrader
    , contributor
    Comments (709) | Send Message
     
    Stephen - I agree with you.

     

    But, AAPL will add about 40 billion cash this year. Yes, much will be overseas. But, if you look at Texas Inst. and MSFT they present different methods for dealing with this - Texas brings back its cash and pays taxes and the market rewards them for it. Because, there's really no reason to keep it overseas forever unless you think that a tax holiday is coming. Meanwhile MSFT issues bonds against their balance sheet.

     

    Both are good ideas for AAPL - particularly since they actually have logged taxes for some of the overseas cash - so there would be no income statement hit if they did bring back cash.
    18 Mar 2013, 12:31 PM Reply Like
  • Stephen J Melnykevich
    , contributor
    Comments (1322) | Send Message
     
    Interesting point XR.

     

    To add to your information. If AAPL were to raise the Dividend by %25 to $3.31 would be about 12-13B a year or a 32% payout ratio which is excellent.
    18 Mar 2013, 12:45 PM Reply Like
  • JUDOKA
    , contributor
    Comments (404) | Send Message
     
    Typical analyst BS.Setting investors up for disappointment.
    18 Mar 2013, 10:06 AM Reply Like
  • gensearch2
    , contributor
    Comments (1556) | Send Message
     
    Six analysts stick their fingers in the wind and make a weather prediction 1-6 months from now.

     

    This is called a "consensus"
    18 Mar 2013, 10:39 AM Reply Like
  • benito67
    , contributor
    Comments (60) | Send Message
     
    I am convinced Cook doesn't care about stock price or investors.He will do whatever he wants or he wouldn't have let this go down so far..I'm sure the people working there love his pillosophies.He might as well be running a private company
    18 Mar 2013, 10:58 AM Reply Like
  • The Count of Cristo
    , contributor
    Comments (296) | Send Message
     
    he wants it down so he can buy cheap
    18 Mar 2013, 12:08 PM Reply Like
  • rrose39
    , contributor
    Comments (1044) | Send Message
     
    "He will do whatever he wants...."

     

    I agree with this but am not overly concerned by it.

     

    Tim Cook and his board are building value. Of that much I'm sure.
    18 Mar 2013, 11:09 AM Reply Like
  • benito67
    , contributor
    Comments (60) | Send Message
     
    But don't tell me all those people that work there and are watching there savings and retirement go away like a fart in the wind aren't nervous about the decisions being made..I've been there and had that happen and it works on your brain and your performance
    18 Mar 2013, 11:13 AM Reply Like
  • thermus
    , contributor
    Comments (50) | Send Message
     
    I own the stock in my IRA and cash account. Was not nimble enough to get out when way ahead and now under water but still a believer.
    Cook does not impress me nor do the analysts prognostications
    after having worked on Wall Street all my life.
    18 Mar 2013, 12:02 PM Reply Like
  • kimboslice
    , contributor
    Comments (1787) | Send Message
     
    If you are "under water" you must have bought AAPL recently. It's up 475% since Jan 2009.
    18 Mar 2013, 12:57 PM Reply Like
  • tigersam
    , contributor
    Comments (1707) | Send Message
     
    Do not pay anything to vultures. No dividend. Buy back shares for $100B. Then float again at $1000.
    18 Mar 2013, 01:39 PM Reply Like
  • Bullmarketcall
    , contributor
    Comments (1957) | Send Message
     
    Increasing dividen in response to a period of low flight is a big mistake and it is not likely that the company which is famous for going against Street direction is going to take.

     

    maybe they are smart enough to get the roumor out on the street and get people excited (again). That wouldmake a checkmate
    18 Mar 2013, 02:04 PM Reply Like
  • rrosey2
    , contributor
    Comments (883) | Send Message
     
    Most "comments" are wishful thinking, or support for a pre-existing financial position.

     

    Where do we get neutral analysts who don't reach for sensational statements ?
    18 Mar 2013, 04:07 PM Reply Like
  • robkrushell
    , contributor
    Comment (1) | Send Message
     
    Increasing dividend is a relatively meaningless short term answer - announcing that AAPL will use the money for an aggressive share repurchase every time the stock is undervalued would be much more useful. That and a new product, like an apple wrist"watch" would take care of everything.
    18 Mar 2013, 10:32 PM Reply Like
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