Apple to distribute special dividend ahead of fiscal cliff?

“Wednesday’s move by Costco to distribute a special dividend ahead of tax hikes next year has renewed buzz that Apple may follow suit,” Tom Bemis blogs for marketWatch,

“With the fiscal cliff looming, companies sitting on big cash piles are facing the prospects of investor unrest if they fail to act before increased dividend taxes kick in next year,” Bemis writes. “And Apple’s sitting on the biggest pile of cash of anyone, around $120 billion, as Insider Monkey notes.”

Read more in the full article here.

25 Comments

    1. Bad idea. Hoard cash. If Apple were a $5 stock with $2 a share cash(2013) and 20% growth would you buy it? Apple will be 1st stock to trade off cash hoard in a couple years. Margins et at will be meaningless. Right now that would take a 100/1 split.

  1. Wow. Costco did something and therefore Apple might do the same thing? You might as well write an article about “Apple might have a fire sale on the iPad because HP did with their tablets”.

    Stupid.

        1. Oh yeah? Like for what? You’re the [self-proclaimed] cynical genius on this site that knows more about Apple and AAPL than anyone (IYHO), so be specific. Let’s hear what Cook and Company should do with this mountain of cash–and spare no detail please.

            1. The buyback is to cover options paid out to employees to prevent stock dilution.
              The idea is to keep the number of stocks consistent.
              It is basically the company paying for the cost of the options.

          1. Not a cynical genius- just not a fanboi.

            I agree that Apple has been ripped off and harmed by Google, Samsung & Co. I also see a CEO and legal staff unable to do a damn thing about it.

            I also see a company running away from the computing market and ignoring the pro apps & hardware that kept the lights on and granted Apple much of it’s cachet.

            I see a company vulnerable to the vagaries of it’s supply chain despite having more than enough resources to bring it in house.

            I see a company unable to do anything more than me too in internet services.

            I see a company that has left truckloads of money on the table by abandoning the enterprise and embedded markets.

            The spending should start by fixing those issues. Not buying back stock or handing cash back to investors.

        2. “Use” being the operative word here. Apple isn’t “using” any of the money. And a lot of Apple employees own a LOT of stock, and these stock market games that keep AAPL artificially low hurt Apple employees too. So… Apple should do something special to help boost the stock. A split, why not?! But dividends are also a very nice thank you to stock holders, and a big F U to the game-players on the market. Apple has more than enough cash laying around. It’s time to share a smidge of it. Yes, it’s sad that it comes down to this. But AAPL below $600 is an extremely sad and frustrating state.

  2. It’s not a cliff, and going over could be a good thing. Probably won’t happen since Republicans are starting to sound a tiny bit reasonable. Costco is nuts for taking drastic action on a complete unknown. Div taxes may stay put, or just go up for the .01%, or go up an unknown amount for everyone. Cook can’t be stupid enough to do this. It would put a lot of money in my pocket, short term, but I’m dead set against doing anything based on an unknown.

  3. Yeah, using Rumor & Buzz to trigger a feedback loop is a waste of time, energy and $$$!
    Rumor & Buzz would likely be a better bar drink than a sound business strategy.

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