“Wall Street cheered Apple’s robust quarterly report, but now investors are waiting to see what the tech giant does with its record amount of cash,” JeeYeon Park reports for CNBC.
“Apple generated $14 billion in operating cash flow in the March quarter, making the company’s total cash position of around $110 billion,” Park reports. “‘The best thing they can do is [make] steady increases in the dividend,’ said Larry Haverty, portfolio manager at Gabelli Multimedia Trust on CNBC’s Closing Bell. ‘There’s plenty of room for improvement in the payout…Steady increases maybe once every six months and push the stock up between 2.5 and 4 percent yield and we might even get more than $750 [a share].'”
Park reports, “Last month, Apple announced it will pay a quarterly dividend of $2.65 per share, starting in the quarter beginning July 1, and added it will begin a $10 billion share buyback program. Other analysts seemed to agree that Apple should increase its dividend payout. ‘We continue to believe that the dividend is conservative and we see plenty of opportunity for growth in dividends as well as buybacks,’ wrote BMO Capital Markets in a research note.”
Read more in the full article here.
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[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]