Tags: Apple | Cash

Apple to Reveal Decision on Use of Cash Hoard

Monday, 19 Mar 2012 06:55 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

NEW YORK (AP) — Apple Inc. said it will announce the outcome of its internal discussion concerning its enormous cash balance on Monday morning.

Analysts expect Apple to institute a dividend. It can easily afford one, since it had $97.6 billion in cash and securities at the end of last year. That would be enough for a $100 one-time dividend for every shareholder, but analysts expect the company to institute a modest recurring dividend.

Apple CEO Tim Cook and Chief Financial Officer Peter Oppenheimer will discuss the decision on a conference call at 9 a.m. Eastern time (1300 GMT) Monday morning, the company said late Sunday.

A dividend would reward shareholders and open ownership of Apple shares to a wider range of funds. Many "value-oriented" funds are not allowed to buy stocks that don't pay dividends.

Analysts say the lack of a dividend or other meaningful way of using the cash has held down Apple's share price.

Oppenheimer said on a quarterly conference call with analysts in January that the board was in "active" discussions on ways to use the cash. Former Apple CEO Steve Jobs, haunted by lean years in the mid-1990s, likely stood in the way of returning cash to shareholders. Jobs died in October.

Partly in anticipation of a dividend, Apple's stock has risen 37 percent since the Jan. 24 conference call, closing much of the gap between analyst price targets and the actual stock price. In February, Apple shares broke the $500 level for the first time. Last week, they briefly rose above $600.

Apple is the world's most valuable publicly traded company, with a market capitalization of $545 billion.

Its shares closed Friday at $585.57, up 1 cent on the day.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Space Station Gets Easter Delivery of Food, Supplies

Sunday, 20 Apr 2014 15:42 PM

A Space Exploration Technologies' cargo ship made an Easter Sunday delivery of food, science experiments and supplies to . . .

Obamacare Enrollees Urged to Change Passwords over Heartbleed Bug

Sunday, 20 Apr 2014 10:55 AM

Americans with accounts on President Barack Obama's health insurance enrollment website, HealthCare.gov, were advised th . . .

Dragon Supply Capsule Reaches the Orbiting ISS

Sunday, 20 Apr 2014 10:35 AM

The unmanned Dragon capsule from the private US firm SpaceX successfully reached the International Space Station Sunday, . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved