“When Apple reported its monster Q1 results on Tuesday, the company revealed that its cash, short-term investments, and long-term investments totaled $97.5 billion,” Adam Levine-Weinberg writes for Seeking Alpha.
“This disclosure triggered another round of speculation about what the company should do with all that excess cash (Apple carries no debt),” Levine-Weinberg writes. “Management was forced to deal with various iterations of the question: ‘When and how might you return cash to shareholders?’ on the earnings conference call. For the most part, analysts have predicted a relatively modest dividend of 2-3%, to be initiated sometime this year.”
Levine-Weinberg writes, “While a modest dividend or share buyback are possible, Apple executives may have other ideas. The following are three fairly radical ideas for what Apple could do with excess cash.”
• Initiate a Massive Quarterly Dividend
• Become completely carbon neutral
• Start a Private Equity Fund
Read more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]