Print 31 comment(s) - last by BifurcatedBoat.. on Mar 20 at 5:30 PM

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.

Source: Market Watch

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RE: The investors are looking for short term gains
By Tony Swash on 3/19/2013 1:25:32 PM , Rating: -1
An interesting aspect of Apple's finances in recent years is the explosion in spending on capital investment, literally in plant and machinery. The fascinating historical context for that is examined in some detail by Horace Dediu in his recent presentation as part of the Harvard Business School Technology and Operations Management Digital Seminar Series.

His presentation, including many animated graphs analysing the development of the mobile device markets and platforms in the context of the computer markets over several decades. is available as a download for replay on any i-Device. Definitely worth a look especially when trying to understand Apple's financial planning. It's here

By GulWestfale on 3/19/2013 3:05:26 PM , Rating: 1
wow that sounds totally interesting and exciting!
and if i didn't have a job, girlfriend, hobbies -a life, really- i'd totally put that on an endless repeating loop!
well i would, if i had an "i-device". thankfully, i have a galaxy, like most other sane people.

RE: The investors are looking for short term gains
By Tony Swash on 3/19/13, Rating: -1
By GulWestfale on 3/19/2013 6:28:33 PM , Rating: 1
is he as good at data analysis as your iOS spell-checker is at catching your myriad typos?

By StormyKnight on 3/19/2013 10:23:18 PM , Rating: 2

Pot, meet Kettle. Kettle, Pot...

By Pirks on 3/19/2013 3:26:41 PM , Rating: 2
People, ignore it, it could only be watched on iPhone. Tony failed hard again :)))

By retrospooty on 3/19/2013 5:44:55 PM , Rating: 1
Tehy do care about tech... They dont care about finance and certainly not about Horace Dediu. He is much like you, spends all of his time thinking about Apple and has zero insight or understanding into anything else. As Applecentric as it gets... But still its finance. Might I suggest you take that type of thing here?

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