“The three-year anniversary of Apple’s announcement of a record capital return program is approaching in April, and one analyst believes the cash juggernaut will mark that occasion with a new $200 billion program to buy back shares and raise its dividend,” John Melloy reports for CNBC.
“Kulbinder Garcha of Credit Suisse upgraded the stock to ‘outperform’ from ‘neutral’ Tuesday because of this expected announcement, seeing the shares 19 percent higher over the next 12 months from Monday’s closing price,” Melloy reports. “The analyst points out that Apple has more cash on hand than it had when the program began.”
Melloy reports, “‘We estimate that Apple’s net cash will be at $143 billion by April 2015 and as such, see it likely that management will do another increase in (an) upcoming announcement,’ Garcha wrote. ‘We now assume that Apple will announce a sizeable increase in its cash return program for the next 3 years through the end of 2017 to over $200 billion of which $165 billion will be buybacks and $37 billion will be dividends.'”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Edward W.” for the heads up.]
I’ll take a 25% raise on my dividend income. Apple will definitely have the cash to spare. And this will only make the stock more attractive to hold rather than trade. Well, the manipulators will still find a way to screw up the stock price…
This CNBC link is really screwed up. I’d advise not wasting your time. When you get to CNBC a big popup appears and when you click to get rid of it the site takes you to another story about the market. You can’t get back to the Apple story because the same process repeats.
I really HATE how these stock analysts all talk about Apple “returning” money to the holders of AAPL stock. Virtually no one of the current stock holders paid any money directly to Apple for that stock. They all bought it from someone else. Therefore there is absolutely zero money for Apple to “return” to those stock holders!
I all gets back to the warped mindset of “I own AAPL stock. Therefore Apple owes me money!” In a word: Bullshit.
Disclaimer: I own a significant number of shares of AAPL. I have done so since right after the “Dark Days”. I shall continue to do so for the foreseeable future. Sure, I anticipate that I will make on the order of $100 for every $1 I put in many, many years ago, but that is absolutely NOT because I believe Apple owes me anything or must RETURN money to me.
I’ve already made, easily, 100:1 on my initial purchase of AAPL, but it wasn’t many, many years ago. It was 16 years ago. In 1999 I bought as the share price dropped from $25 to about $15 per share. Every share I bought is now 28 shares. Apple has more than made me whole for my initial investment. It’s HP that owes me money. I lost a metric butt-ton of money on that stock.
Shadowself, I have to say that you have a most peculiar viewpoint on being a shareholder. While I agree that Apple management is responsible for making the calls on corporate asset management, the shareholders ultimately own the company. It is reasonable and normal for a corporation with excess capital (more than it needs for ongoing operations, acquisitions, strategic contracts, and reserves). If a company cannot invest this excess capital at a reasonable rate of return, then it should “return” it to the shareholders.
You can get all worked up about the use of that term, but it really does not matter. Nor does it matter if the shares were purchased from Apple or another shareholder. Those shares still represent ownership. I am not any fonder of the manipulators, vultures, and idiot analysts that you, but I think that you are a little off base.
the warped mindset of “I own AAPL stock. Therefore Apple owes me money!”
Are you an idiot?
The ENTIRE purpose of any joint-stock corporation is to generate a profit for its SHAREHOLDERS.
The shareholders are Apple’s OWNERS.
-jcr