Some snippets from Evan Niu:
• Maybe the Trump administration will actually have some type of [repatriation tax] holiday. There’s been a lot of talk about that. But at this point, it’s still pretty uncertain, if that will happen sometime. If there is a one-time repatriation deal, either deemed repatriation or a one-time thing, I do think Apple would take that opportunity to bring quite a bit of cash back. But, at the same time, I think we have to acknowledge that the majority of their capital needs are actually outside of the U.S.
• I’m not a fan of the whole “make a huge blockbuster acquisition” idea, which some people like to talk about. I think that would be kind of irresponsible. But, we’ll see what happens. It really hinges on this idea of a tax repatriation, because that would allow them to really bring back more and either give it back or do something more productive with it.
• [Apple] did boost their quarterly dividend payment 10.5%, it is now $0.63 per share. Now, Apple is the world’s largest dividend payer, it just passed ExxonMobil, which is just another fun tidbit about the scale of their business and how quickly they are printing cash.
Read more and watch the video in the full article here.
MacDailyNews Take: We believe there will be action on both corporate taxes and a repatriation tax holiday eventually. It’s interesting to note that Apple is now the world’s largest dividend payer. Whodathunkit a mere decade ago?!
Analyst: Apple could double dividend, buy Netflix with repatriated cash under President Trump’s U.S. corporate tax changes
Friday, March 17, 2017
Apple’s real dividend yield is much higher than you might think – March 10, 2017