Apple Increased Investor’s DividendAdded: Sunday, March 31st, 2013
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The software and hardware giant is trying to boost its share price by increasing dividends to shareholders by 50%. In result, Apple shareholders will collect $15.7 billion of the company’s cash mountain.
Financial analysts estimated that each shareholder will get $4.14 per share, with the resulting yield of 3.7% being higher than 86% of the companies in the Standard&Poor’s 500 Index paying dividends. In the meanwhile, the company won‘t have to be hammered for tax from this move. The matter is that it would use its American cash pile instead of its foreign money which would be subject to extra taxes.
The company has been under a pressure to start returning money to investors after the price of its stock fell dramatically. Shareholders, including David Einhorn’s Greenlight Capital, have been pushing for more money as growth slows and the company losses ground to Samsung.
According to experts, Apple is sitting on more than $137 billion in cash and investments. As such, buying the shareholders off won’t hurt that much. Apple’s CEO Tim Cook, who reinstated a dividend and announced a $10 billion buyback a year ago, currently faces growing pressure to take bolder steps to pay out more of the company’s $137 billion in cash and investments. However, most financiers agree that there’s no way that the corporation will ever need as much cash as it is sitting on.
Although Apple does want to buy back a lot of its stock, it would be very expensive, especially now. In 2013, Apple could add another $40 billion to its cash mountain, $15 billion of that being in the United States. However, that doesn’t influence the fact that there’s been a $300 billion decline in value. The experts point out that such one time pay-out could boost Apple’s share price and put it on the path to recovery by attracting new shareholders.
March 31st,2013Posted by:
Sunday, March 31st, 2013
|posted by (2013-03-31 23:34:53)|
|Sounds weird,, But apple had a punch|
|And not one cent of it came from me.......|
|great article sam, can you pm me your source for this?||
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