“Morgan Stanley’s Katy Huberty, who pointed out in a note to clients Wednesday that in addition to the $34 billion in cash and marketable securities Apple has in the U.S. and the $64 billion it holds overseas, it will generate at least $18 billion in free cash flow this year in the U.S. alone,” Philip Elmer-DeWitt reports for Fortune.
“If the company distributes 50% to 100% of that cash to shareholders, that works out (at a $500 share price) to a 1.9% to 3.8% dividend,” P.E.D. reports. “Given the new products (iPad, iPhone, etc.) coming online, Huberty believes the prospect of a dividend could drive Apple’s share price past her current target of $515 to her ‘bull case’ of $600 per share.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]