“Morgan Stanley analyst Katy Huberty recently met with Apple Chief Financial Officer Peter Oppenheimer,” Neil Hughes reports for AppleInsider.

“With Apple’s cash balance $40 billion higher than it was in March of 2012, Huberty believes the company will likely return more cash to shareholders,” Hughes reports. “She believes the iPhone maker could match the S&P 500 IT sector’s average free cash flow payout of 68 percent.”

Hughes reports, “At that rate, Apple could return $28 billion to shareholders in fiscal year 2013, which would imply a 6 percent total yield on the company’s dividend. That would be a major increase over Apple’s current $2.65 quarterly dividend, which carries a 2.3 percent yield.”

Read more, including info about the potential of a lower priced iPhone, in the full article here.