Apple Dividend May Return Part of $98B in Cash

[Rick-o]

A lot of folks are stuck on that nearly $100 billion figure, like that's all Apple will ever make. I feel that Apple is just starting to hit their stride and will be raking big cash in like no tomorrow.

So what will Apple do when they have $200 billion, $300 billion, or more? This could be the case in just a few short years, IMO.

So what could they do with all that cash? They have more than enough to run the biz, they can only build so many futuristic campus complexes, data centers, and what other companies out there that they truly could buy out to enhance what they already have?

I say reward the stockholders handsomely!! :devil: People like myself will throw it right into the economy and help get things rolling in this country again! It would be better to get that cash out there in circulation rather than sit in a big pile earning next to nothing.

[ztirffritz]

If they put $10billion/year into dividends their cash horde would still grow. At the current pace they're adding more than $10/billion/year to their coffers. A $2/share quarterly dividend would allow me to buy a single additional share of AAPL every year at the current price.

[IronMac]

Rick-o wrote:
sit in a big pile earning next to nothing.

It's earning less than nothing. Apple, as a company, cannot invest such cash in anything other than cash and cash equivalents, ie. almost 0% interest which is below the rate of inflation. In other words, its cash hoard is actually shrinking if profits weren't being dumped into it every minute.

Of course, it can invest in other companies or buy other companies and/or technologies but they don't need tens of billions of dollars in cash to do so.

[Jimmypoo]

If this were a handful of years ago, they would have had 7 years to utilize a cash hoard for purchases,
stock-buybacks, research, etc., otherwise they would have been taxed on those profits in holding, at, iirc,
around 30%. The move was to motivate investment and research.

So now you see what happens when corps aren't taxed at all on that hoarding. Don't you wish YOU people
got the same benefit as CORPORATION PEOPLE, when it comes to profits on your stocks and capital gains?

[Jimmypoo]

IronMac wrote:
[quote=Rick-o]
sit in a big pile earning next to nothing.

Of course, it can invest in other companies or buy other companies and/or technologies but they don't need tens of billions of dollars in cash to do so.
Earning “nothing” and having the ability to move quickly are two very different styles of financial logistics
that are at opposite ends of the spectrum. Most companies have to issue more stock when they want to
grow - and Apple doesn’t have to do that at the moment.

In addition, given the leaking of technology by members of their previous board (whom should disappear
in a barrel filled with cement, located at the bottom of the ocean…) and contract manufacturers who decide
they will get into the same market as the product they are already making for Apple, permit Apple to do
several things BY HAVING THE CASH.

They can invest in another organization (Sharp) so they can shift away from Samsung, indeed, for punitive
reasons, despite the fact that the new iPad display is coming from Samsung, not Sharp, as expected.

They could AND SHOULD buy ARM Holdings, an institution that wouldn’t even EXIST were it not for the
1992 research that was done between VLSI and Apple, that CREATED the ARM processor — a processor
that is now licensed by over 30 companies, including Samsung, Texas Instruments, Freescale/Motorola,
and even DEC before they were bought by Compaq and uselessly purchased by HP for billions when
they had nothing to offer the company except an two old 64 bit designs by way of the archaic Alpha and Itanium.

I stated above that Apple is 70% institution owned. That figure is now 71% institution owned.
Stock buybacks will raise the price of the stock, but are a waste of resources, and only enrich
those INSTITUTIONS who own it now.

Anyone who wants to “cash in” on their investment has every right and opportunity to CASH OUT whenever
they wish to, at substantially more gain than waiting for $2 per share.

If you have 1000 shares of Apple TODAY. Do you really NEED $666 per month extra flow, when you are sitting on $581,000 of liquid $$$$ right now?

If that’s the case… and you want Apple to refund to you a dividend that hasn’t been in effect for 15 years,
and you have as the example above demonstrates, then you have bigger problems with your portfolio
than you are revealing.

Or you could just be dumb.