Will Apple be next up to pay a special dividend ahead of expected U.S. tax hikes?

Bloomberg’s Dominic Chu looks at the prospect of Apple using its cash to join the wave of companies paying one-time special dividends to avoid tax changes in 2013.

He speaks on Bloomberg Television’s “In The Loop.”

The company is a cash machine. That’s cash that belongs to the shareholders of Apple. so the question is… will Apple pay that special one time dividend? Well, analyst Chris Whitmore over at Deutsche Bank says don’t hold your breath… But… over 3 dozen companies in the Russell 300 have announced special one-time payments just this quarter alone.

Direct link to the video here.

Related articles:
Analyst: Don’t expect special dividend from Apple Inc. ahead of Obama tax hikes – December 3, 2012
Apple special dividend: Why AAPL shareholders are owed $30 per share by Christmas – November 29, 2012
Apple to distribute special dividend ahead of fiscal cliff? – November 28, 2012

34 Comments

  1. Rubbish. So tired of pin headed Analists saying Apples cash “belongs” to Shareholders, as if Apple is your personal piggybank.

    Grow up: companies are not “assets” you can liquidate as you please. They are organizations with employees and customers and as a shareholder you are entitled to share in the profits but you do not have a right to directly dictate where the cash goes and ignore the other stake holders in the company.

    1. You’re exactly right. It’s the same pinheads that defend a company like Apple no matter what it does. As you said, Apple is just a company. I can never understand why the pinheads defend Apple as though it’s their best buddy. They will constantly make excuses when Apple has a misstep. They will lash out at those who make obviously honest comments if they’re not 100% positive. It’s so funny. And I’m an AAPL investor of many,many years who makes my living with Macs! So if I don’t act like a childish fanboy why would anyone else? I guess some people just don’t have a life. It’s embarrassing. It’s sad. But you said the keywords “grow up”!

      1. I think the defense of Apple by many is an overreaction to the usual overreaching and unduly harsh criticism of Apple which gets it’s lumps a little harder than the situation usually deserves. Most other companies don’t get the kind of lambasting Apple gets when it makes a mistake. “So excuse me” if there are times when the return volley is a little loud. Those who can’t take the rebukes shouldn’t dish out the nasty comments.

        1. For example, 120 people died in a Walmart factory fire less than a month ago.

          Where’s the outcry by the usual suspects, hmm? Where’s the expose by the NYT, the theatrical posturing about workers’ rights?

          Hypocrites.

        2. Excuse me, but you’re the perfect example of what I was speaking of. As far as those who dish out the nasty comments? As I stated, honest comments that aren’t 100% positive are dealt with very harshly. Rose colored glasses. Take them off. It’s just a company. It’s not your best buddy. Don’t act so childish.

    2. While as a shareholder I, individually, don’t have the right to *directly* dictate how a company is run or what is does with it’s assets, I do have a say via my votes at any shareholder meeting and the company is obligated by law to abide by any binding votes made by it’s shareholders. If enough shareholders call for a special dividend, the company has no choice but to offer one, since the owners are in essence demanding that they pay themselves. The key point is that a majority of shareholders must demand this to make it legally binding. Most companies will see “how the wind is blowing”, though, and not suffer the expense of a special shareholder meeting if the results are a foregone conclusion, and will just do what the shareholders are demanding. If a company doesn’t like the shareholders calling the shots, they can always buy the stock back and go private. If you want access to the capital available via stock markets, you give up a certain amount of control. That’s the key tradeoff for being a publicly owned business.

    3. There are these things called shares. Maybe you’ve heard of them. They can be bought and sold all day long, and liquidated whenever the owner chooses. The value of those shares is dependent in part upon how much money the market thinks a given company will make in profits in the future. The other parts of that valuation are cash on hand and physical assets. As a shareholder I own a part of the cash and part of the physical assets as well as part of the future profits. If a majority of us shareholders decide to pay ourselves some of that cash we can. It’s our money. If we decided to break up the company and sell the assets we could. Those assets are ours. Try to get used to that idea.

      1. +10

        I always find it bizarre that some apple fans keep whacking shareholders. One even said “apple no longer needs shareholders” as “apple already has all the cash it needs” (???).

        They don’t understand that shareholders OWN the company. Shareholders elect the board of directors who appoint the CEO who runs the company.

        Jobs, Wozniak etc made the choice years ago to involve shareholders by going public (to raise funds) and now they have to follow public company rules. Without shareholders apple would not exist. (Cook and many of apple staff are also big apple shareholders ).

        Most shareholders though seem to trust Cook and team. There’s very little dissent in Apple shareholder meetings.

        That said the vast majority of Apple shares are owned by big institutions and funds. I wonder what they think about the ‘special dividend’? Also only a smaller portion of Apple’s cash is in the U.S.

  2. Do the right thing Apple. Give us some of our money before Oblahblah takes more of it to waste paying off his campaign contributors and bribing low-information, system-leeching Democrat voters.

        1. I find it amusing that he is still so sure after the trouncing. Typical insanity condition, saying the same thing over and over no matter what reality shows to be “real”. Even his derision for Obamacare (aka: Romneycare) is so incredibly delusional given the polls that show how many Americans believe that health care was screwed up and needed overhaul. Sour grapes can have some entertainment value, if you just let his noise be nothing more, a din, a white noise, like the waves, peaking then subsiding, pay no attention to that little thing that makes such small thoughts.

  3. A special dividend for those of us who held AAPL through the Bozo Sugar Water Salesman is in order – were it not for us, there would have been no Apple to which Jobs could return.

  4. We don’t need nor want any advice from these ANALysts. Apple does what it sees to best for where the Apple is heading. They actually could save us money and take the announce that they will not pay dividends at all so we save in taxes.

  5. “Will Apple be next up to pay a special dividend ahead of expected U.S. tax hikes?”

    Simple Answer: NO

    This would be entirely out of character for Apple. Imagine Apple offering iPad minis for 50% off on Black Friday. It just wouldn’t happen. I have a lot of my personal money in AAPL. I feel pretty secure investing in AAPL because they have shown they don’t let money burn holes in their pockets, and that translates into more growth for the stock.

    All of these stupid articles about Apple (maybe) paying a special dividend are ludicrous. They are pure link bait and …. GAH! I fell for their trap. I guess i’m the sucker. 🙁

    1. AAPL is down for two reasons today:

      1. Fiscal Cliff chatter, which affects the overall market too.
      2. NPD survey of retail stores (excludes Apple stores) and NPD member retail customers who’ve volunteered to give away personal information in return for free stuff (huge bias toward Android customers). Their survey, unsurprisingly shows Apple sales flat, MS sales crashing, and Android sales up. Ignorant investors are scrambling for the door.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.