AAPL’s net cash position has grown to $159B from $153B in Dec 2015. In the absence of a cash repatriation scenario, we think AAPL could announce and sustain a ~$50B+ annual capital allocation program. Based on recent free cash flow generation ($24B in 1Q17) and projected cash generation ($57B in FY17E), this equates to ~90% of FCF (vs. 79% return in FY16). AAPL can increase its dividend by 15% to get its yield to ~2% and raise its buyback program to ~$35B annually (vs. FY16 $30B). — RBC Capital Markets analyst Amit Daryanani
Rivas reports, “Of course, Daryanani isn’t the only analyst to think an Apple dividend increase is in the works.”
Read more in the full article here.
MacDailyNews Take: We expect a 9-11% dividend hike this year.
After tax repatriation, we’d love to see Apple issue a special dividend to reward shareholders.
Get ready for up to 10.5% hike in Apple’s dividend – April 21, 2017
Analyst: Apple could double dividend, buy Netflix with repatriated cash under President Trump’s U.S. corporate tax changes – March 17, 2017
Apple’s real dividend yield is much higher than you might think – March 10, 2017
Apple preps to distribute dividends totaling $3.1 billion to shareholders – February 8, 2017