“The key to paying dividends and buying back stock is that U.S. cash has to be used,” Jones writes. “Even if debt is raised in other currencies for these purposes the repayment still has to be with U.S. cash.”
“Since Apple hasn’t shown an inclination for large acquisitions, I believe very little, if any, of the $207 billion will be used for them,” Jones writes. “I believe Apple will increase the dividend by at least 11% and maybe up to 20% but may be reluctant to go much higher even though it could… Stock buybacks is probably where most of it is used.”
Read more in the full article here.
MacDailyNews Take: Yes, we agree. Buybacks also mitigate dilution via RSUs and stock options.
Think buybacks and dividends, not major acquisitions. — MacDailyNews, January 5, 2018
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Here’s what Wall Street thinks of Apple’s cash repatriation plan – January 18, 2018
UBS: Buy Apple as company could acquire more than $120 billion of its stock in two years – January 8, 2018
GBH: Apple likely to repatriate $200 billion of its $252 billion foreign cash hoard – January 5, 2018