Analysts Predict Apple Could Be Sitting on $170 Billion in Cash This Year
March 19, 2013 9:40 AM
comment(s) - last by
Some shareholders want cash returned as a dividend to investors
Apple continues to be incredibly successful in the technology market and one of the most valuable companies in the world. So far this year Apple is sitting on a cash stockpile that amounts to $137 billion. Some
Apple shareholders are upset that the company is sitting on that much cash
and isn't paying out dividends to shareholders.
Moody's Investors Services issued a report this week predicting that Apple’s cash stockpile could grow to as large as $170 billion by the end of 2013. That assumes that Apple doesn't change its philosophy towards dividends and stock buybacks. Apple has been under pressure from a hedge fund manager named David Einhorn and other major investors to return some of that cash to shareholders.
Apple has noted that it is in "active discussions" on returning some of that money to investors but no details were offered. Einhorn is currently
involved in the suit
against Apple that CEO Tim Cook has dubbed "a sideshow."
Moody's wrote, "Unless Apple changes its philosophy towards liquidity/shareholder returns by increasing its $10 billion annual common dividend, or if Apple increases it stock buyback program, we estimate Apple’s cash balances could increase by another $35 billion in 2013 and exceed $170 billion."
When it comes to cash reserves, Apple has roughly twice as much as its closest competitor. Microsoft was sitting on total cash reserves of $68.3 billion as of December 31, 2012. Google is slightly behind with $48.1 billion.
The only non-technology company in the top five biggest cash-rich companies in the United States was pharmaceutical giant Pfizer with $46.9 billion in cash taking the number four spot. Rounding out the top five is Cisco Systems with $46.4 billion in cash.
This article is over a month old, voting and posting comments is disabled
RE: There is no "returning"!
3/19/2013 12:43:38 PM
I wont reply again except to say that you are sadly confused. Simply because you signed the dividend agreement as it currently stands doesnt mean you arnt a stakeholder. In fact, the large your share count, the larger your voting position is in drafting the dividend agreements.
Additionally, I believe that the stakeholders here are arguing that they should see the return (ROI) as an increase in stock value, which would be generated by direct investment from cash reserves in growth generating expenditure, or in the form of a higher dividend. Keep in mind both of those things, a higher dividend and/or higher growth spending from cash reserves will push the share price up.
Believe me, "sell your shares if you dont like it" is not an approach the board would look favorably upon. You're essentially inciting a run on Apple stock. When everyone who doesn't like it decides to sell, guess what happens to the market price of Apple stock?
RE: There is no "returning"!
3/19/2013 2:10:03 PM
I'm not sadly confused. What you're saying makes sense, but Apple isn't legally obligated to listen to what you, or anyone else, would do if you were boss at Apple, that's my only point.
Owning public stock doesn't give you a seat on the board.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
Apple CEO Upset About Low Share Price
February 28, 2013, 8:25 PM
Apple CEO Refers to Einhorn Lawsuit as "Silly Sideshow," "Bizarre"
February 12, 2013, 4:32 PM
Quick Note: Apple Watch to Get Brick and Mortar Boost From Best Buy
July 27, 2015, 3:00 PM
Can HTC Save Its "RE Grip" Smartband After Its Inexplicable Failure Launch?
July 17, 2015, 2:29 PM
Facebook's "Moneypenny" is Cross Platform Siri on Steroids
July 15, 2015, 3:59 PM
Apple Watch Sales Have Plummeted
July 8, 2015, 5:01 PM
Consumer Reports: Galaxy S6 and iPhone 6 Can't Keep Up w/ Galaxy S5
July 6, 2015, 4:57 PM
Apple iOS 8.4 Rolls Out w/ Fix to Crash-Causing Unicode Text
June 30, 2015, 3:24 PM
Most Popular Articles
As iPad Sales Wane and Watch Flops, iPhone Saves Apple's Profit With Its Heroics
July 22, 2015, 6:13 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Microsoft July 29 Windows 10 Launch: Freebies, Rollout, and What's Next
July 21, 2015, 2:40 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Google Scores Bizarre Court Win as Disgruntled Android Users' Lawyers Ruin Case
July 16, 2015, 5:58 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information