SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Apple Inc.
AAPL 271.810.0%10:37 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: manalagi who wrote (149230)1/25/2013 5:50:21 PM
From: Keith Feral  Read Replies (1) of 213176
 
The greatest thing about Apple is that everyone is talking about the $250 billion cash hoard they will have in a couple of years. The annualized dividend of $10 billion has only paid out $5 billion since inception. They will earn an extra $4 or $5 billion in US cash this quarter, so the dividend pool is still growing nicely.

It would be sweet if Apple preannounced a dividend hike for later this year, while they sit back and grow the slush fund of US cash for another couple quarters. They should let the first 4 quarters of the $10 billion dividend in place as long as possible. However, they could come out in March like last year and boost the dividend for August to whatever level they think is acceptable. By then, the US cash position could be closer to $45 billion or more heading into the second half of the year, when they can cover the higher dividends with their big 4th quarter cash flow like this year which essentially covered the entire year of dividends.

Once T Mobile is buying iPhones from Apple this year, that would add at least another $1 billion per quarter in US cash. That would fund a $1 billion dividend hike required to get Apple closer to $15 billion per year. At current price that gets them to 3.6% yield.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News