Michael Holland, chairman at Holland & Company, talks about the impact of tax laws on Apple and explains why he expects the company to pay higher dividends in the future. He speaks on “Bloomberg Surveillance.”
Michael Holland is the Chairman of Holland & Company, a private investment firm he founded in 1995 in New York City. He is also the President and Founder of the Holland Balanced Fund. More info on Holland’s background here.
It’s crazy what’s going on with the European Union doing a retrospective look at taxing Apple… I think they probably are going to pay more in dividends in the future than they have in the past in part because of this [EU tax situation and possible US repatriation changes]. — Michael Holland, chairman at Holland & Company
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Read more in the full article here.
MacDailyNews Take: If we get a U.S. corporate tax fix so Apple can bring home some of their cash mountain, we’d expect Apple to use some of those funds — as opposed to issuing more debt — for buybacks and dividends.
And, in other news, the sun rises in the east today…
I suppose higher dividends are the only thing Apple shareholders can look forward to. Apple’s share gains over the last couple of years trail all the major tech companies around. Apple stock is a laggard despite decent fundamentals. Companies like Amazon, Alphabet, Facebook and even Microsoft continue to soar while Apple goes nowhere. I’ll simply have to be content over a reduced share count and maybe the dividends will increase at a faster rate in the future.
At this point I’ll take whatever I can from my long-term Apple investment. Apple appears to be no longer attractive to the big investors and that’s all there is to it. I’ve turned my portfolio into mainly dividends stocks so I can depend on quarterly returns. I’ve given up on Apple having any share gains under Tim Cook. He’s like Microsoft’s Steve Ballmer for Apple.
It might seem so now. I’m hoping that will change. I haven’t given up on that yet. As it is the money I made on Apple stock is considerable.
Tim Cook has said in the past that Apple will grow dividends so this is no surprise.
Apple stock, like that of many companies, tends to have growth spurts and quiet times. It doesn’t pay out like a bond.