RBC: Apple could fund $65+ billion annual capital return program; raises target to $140

“Apple is set to announce an update to its capital return program in April, and investment firm RBC Capital Markets believes the company could return some $65 billion to investors annually, creating yet another reason to buy into the company’s stock,” Neil Hughes reports for AppleInsider.

“Analyst Amit Daryanani issued a new research note on Thursday, a copy of which was provided to AppleInsider, announcing that he has raised his price target on shares of AAPL to $140, up from his previous prediction of $130,” Hughes reports. “Daryanani believes the company could ‘comfortably’ announce a $65-billion-plus capital return program for fiscal year 2016. He sees increases in both dividends and buybacks as a use for the company’s massive cash hoard.”

Hughes reports, “Daryanani’s expectation is that Apple will return 100 percent of its free cash flow to investors, helping to finance a 50 percent increase in its quarterly dividend to a 2 percent yield.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]

10 Comments

    1. If you really believe that then you are willing to buy the stock at that price otherwise you just live in a dream world. The stock is priced to exactly what people are willing to buy it at. Just think about it for a while.

        1. I was a bit brusque. I can’t stand the way that people evaluate AAPL so high but are completely unwilling to buy it at that price. Just who do they think will buy it at $170 today?

          1. I agree that $170 seems pricey and I probably wouldn’t buy at that price, but not too long ago you could have said $1000 seemed pretty crazy. We’re not too far from that now. Apple has been going up pretty steadily since 1997. If the company continues to maintain growth, $170 may not be unbelievable.

            1. Just who do they think will buy it at $170 TODAY?

              Yes, in time it will be worth $170 but not today. People don’t yet see its underlying value but that is how it is.

  1. I’d like to see an increase in annual dividends if it doesn’t stretch the company too thin considering most of the cash hoard is overseas. Truthfully, I’d rather have Apple put more money into long-term R&D than things that are only going to attract the Wall Street vultures. When I watch PBS series and at the end they talk about the show being funded by such and such foundations, it would give me great pride to hear Apple’s name being mentioned there some day. Those little things matter to me. I guess I’m just not that greedy an investor as most. I think Apple could do a lot more with that money than simply give it back as cash.

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