Apple (AAPL) Could Reward Loyal Shareholders with a Dividend as Soon as Thursday
Apple (Nasdaq: AAPL) is hosting its 2012 shareholder meeting in a few days and word among certain investors suggests the tech behemoth could reward investors with a surprise dividend announcement during the event.
With a ballooning cash balance nearing $100 billion, a dividend announcement is widely expected, although the timing is still up in the air. It was just last week that Apple CEO Tim Cook asked for "patience" from investors with the Board's ongoing review of the use of cash.
While the dividend is not widely expected at the event, would there be a better time and way to make the announcement? It just seems like such an opportune time to reward loyal investors and keep the momentum going.
What would an Apple dividend look like? Would it be a special one-time dividend or an ongoing dividend?
Apple's cash hoard currently sits at $97.6 billion, or about $105 per share. However, 66 percent of this cash sits offshore. The offshore cash could have tax consequences to repatriate it at this point, so Apple's dividend will likely come from the approx. $33.6 billion in domestic cash.
With this U.S. cash, Apple could pay out a special dividend of up to $36 per share. More likely though would be a special dividend in the $20-$25 per share range.
An ongoing quarterly dividend could yield in the 1-2 percent range -- or $5 to $10 on an annual basis ($1.25 to $2.50 per quarter).
Apple's shareholder meeting is set for Thursday, February 23rd.
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With a ballooning cash balance nearing $100 billion, a dividend announcement is widely expected, although the timing is still up in the air. It was just last week that Apple CEO Tim Cook asked for "patience" from investors with the Board's ongoing review of the use of cash.
While the dividend is not widely expected at the event, would there be a better time and way to make the announcement? It just seems like such an opportune time to reward loyal investors and keep the momentum going.
What would an Apple dividend look like? Would it be a special one-time dividend or an ongoing dividend?
Apple's cash hoard currently sits at $97.6 billion, or about $105 per share. However, 66 percent of this cash sits offshore. The offshore cash could have tax consequences to repatriate it at this point, so Apple's dividend will likely come from the approx. $33.6 billion in domestic cash.
With this U.S. cash, Apple could pay out a special dividend of up to $36 per share. More likely though would be a special dividend in the $20-$25 per share range.
An ongoing quarterly dividend could yield in the 1-2 percent range -- or $5 to $10 on an annual basis ($1.25 to $2.50 per quarter).
Apple's shareholder meeting is set for Thursday, February 23rd.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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