Exploring Apple’s tax situation under U.S. President Donald Trump

“There has been a lot of discussion regarding Apple’s situation with Donald Trump as President-Elect of the United States,” Bill Maurer writes for Seeking Alpha. “With the potential for a tax holiday to bring home foreign funds at a low rate, the company that has well over $200 billion in cash outside the US would likely benefit most. Last week, a fellow SA contributor suggested that Apple would enact a large buyback, and while I agree a buyback would occur, I don’t think we’d see one to this extent.”

“Apple’s capital return plan started in fiscal 2012, and the current program is aimed to return $250 billion to shareholders, of which $186.23 billion had been returned at the end of fiscal 2016. Apple has bought back $133 billion worth of shares under the current $175 billion buyback program, which has reduced the share count by nearly 19% over the past four fiscal years,” Maurer writes. “Should the company be able to repatriate more than $175 billion as the author above suggested, I don’t see the company coming out and instantly announcing a massive buyback. If that were the case, it is likely that Apple shares would jump on the news, forcing the company to pay more for shares and making the program less successful.”

“If Apple were to go the buyback route, I think the company would use the same strategy as it has all along, mostly being slow and steady,” Maurer writes. “With tens of billions of cash available, Apple could use the money to provide a line in the sand, say stepping in to support the stock when it hits a certain level (for example $100 a share).”

“One area where I think Apple would look to use some of this repatriated cash is the dividend. I don’t see a big one-time payout, but I could see the company hiking the dividend by a sizable amount and keeping a large chunk of cash in reserve to maintain this payout and further increases,” Maurer writes. “Finally, while I don’t see Apple throwing tens of billions behind an acquisition like a Tesla Motors or Netflix, I could see the company making smaller more targeted acquisitions…”

Read more in the full article here.

MacDailyNews Take: Apple should be paying a strong dividend to encourage investors and reward shareholders, since the market consistently undervalues the stock by a large margin.

SEE ALSO:
Jim Cramer: Two reasons why President Trump could save Apple billions – November 19, 2016
Apple’s repatriation and share buyback could Trump all – November 18, 2016
Morgan Stanley: Apple stands to benefit the most from President Trump’s corporate tax plans – November 11, 2016
Apple and U.S. President-elect Trump: Can a tax cut for overseas cash heal wounds? – November 10, 2016
Apple could be able to pay just 10% tax to repatriate overseas profits under President Trump’s plan – November 9, 2016

31 Comments

  1. Let’s hope all this takes place before he’s impeached. This isn’t wishful thinking.. just a terribly obvious sequence of events. He’s astoundingly out of his depth, the ultimate expression of the Peter Principle. Even the Republicans in congress won’t be able to obfuscate or dissemble enough to excuse the sheer scale of the crimes Trump is destined to commit. The only good things might be a bigger Apple dividend and the recognition for all time that elevating a demogogue CAN happen here and we must be far more vigilant that an epic criminal like him never ascends to power on the backs of the easily fooled.

        1. jitnol,

          You need a bit of education.

          Those who insinuate that Crooked Hillary “won” due to popular votes are fools. It’s akin to claiming that even though the Red Sox beat the Yankees 7-5, they actually lost because the Yankees happened to get 2 more hits than the Sox in that game.

          The way you win are runs (electoral votes), not by amassing hits (individual votes). The hits are merely statistical noise, the totals of which do not directly affect the game’s outcome. Only runs are important when determining the winner and therefore the game is played to achieve that goal.

          Trying to change the rules of the game after you’ve lost is what a three-year-old tries to do. Once. Until they immediately wise up. I suggest that you and the idiots marching in the streets do the same.

  2. Queen’s pawn to “d4”
    If you are going to appropriate a name, it might be good to understand the actual game you playing. The crimes began long before his improbable and regrettable rise to power. Anyone who can look at his personal history.. even granting him some leeway, understands that past is prologue and he’s destined to historic failure. America is a great nation, but more than that it’s a great set of ideals and a self correcting system. The pendulum, swung so uncharacteristically hard to the right this time, will swing back, likely even harder when the working people of this country realize Trump is a union buster and does not have their best interests at heart. No return to big coal, no high paying manufacturing jobs (hello robot!), and no actual or lower cost health care plan to replace the deeply flawed but well intentioned Affordable Care Act (it’s anything but affordable due to shortsightedness by Obama and his allies)… Trump is a thin skinned bully, incapable of genuine leadership. His attention span is alarmingly short, his understanding of governance simply non-existent, and his team full of sycophants and toadies. This will be a dark period for the nation.. but it’s less than four years.. We will be alright.

    1. Amazing how the looney left can predict Trump’s future, but could not predict Hilderbeast’s. LOL

      With control of all branches of government, Americans have taken their country back from the Participant Trophy, PC whackos. Get used to it.

      Democratic police have destroyed this country. In just one short generation we have lost the lead in education, science, industry, manufacturing, innovation, etc.

      A generation ago, 18year olds were jumping off ships, storming the beach into war. Democrats have turned today’s “Children”
      into running to safe spaces because words hurt. Disgusting.

      There is a reason that conservatives are call the “Right” and liberals are called “libtards.”

  3. notvinnik, just stay vigilant and let the situation play out. The MDN forum is not the place to hold political battles, even though MDN posts the clickbait and loves the volume.

    Besides, this forum was long ago hijacked by the alt right and they have the copy-and-paste attacks ready for all occasions. Best to let sleeping vermin lie.

    1. You are right of course.. I’ve seen the hard right warhawks for years bleed the nation…literally and figuratively by feeding the military industrial complex that Eisenhower so wisely warned against. I frankly don’t care.. I’m totally insulated since I’ve made a literal fortune through my investment in Apple. But I do get a laugh out of righty’s who have such a short memory they can’t recall cranking up of the war machines by literally every Republican administration in modern history. Typically these people have never served in the military, never seen actual war, never lost a loved one in combat. They believe that deregulation and free markets are the answer for everything and that the entitlement society is destroying America. The real problem they can’t see that they are only half right. So it makes me laugh since I can almost calculate their IQ score by extrapolating from their EQ score. Thin skinned, full of name calling, instant over reaction just like their dubious hero. ha ha ha ha.. what loons…

      1. “I’ve seen the hard right warhawks for years bleed the nation..”

        • The Civil War – Jefferson Davis, Democrat
        • World War I – Woodrow Wilson, Democrat
        • World War II – Franklin Roosevelt, Democrat
        • Korean War – Harry Truman, Democrat
        • Vietnam War – Lyndon Johnson, Democrat

        You’re an idiot.

        1. You simply are out of you depth Bot.. You do not know what you are talking about..just like your dubious hero. Ha ha ha.. what a joke. It amuses me to see you squirm. The Democrats and their ideals shifted over time so your historical references are completely without merit. You can’t take them out of context by looking them up on wikipedia. Did you even manage to get out of High School? I’ll have one of my graduate students formulate a reply you can understand. I’ll instruct him to aim at the eighth grade level.

            1. So fun to watch worms squirm. .ha ha ha.. thanks for being so entertaining. It’s like watching a white rat in cage, taking the bait EVERY time. So predictable. Just like Trump’s early failure and demise. He… just like you, has only words of fear and bluster. Not reasoned logic, not intelligent focus. Keep proving it you poor little man… take the bait. come on. it’s easy..

            2. Reasoned logic:
              If 270 electoral votes equal the presidency and Trump has 306 electoral votes, therefore Trump is the president.

              Now, you’ve got at least four years to grasp that 306 is a larger number than 270.

              Good luck.

  4. Bringing the money back un-taxxed will only make the rich, richer. It will do nothing to pay down the debt, not to mention paying for the huge spending bill that Congress will no doubt pass, and Trump will sign next year.

    I just don’t understand how anyone can still believe that trickle down economics works. It never has, and it never will.

      1. Last time I checked, major US corporations are chocking on cash reserves. They have the money NOW to hire you at 100K, but won’t. “Men with nothing would rather protect the possibility of becoming rich than face the reality of being poor”.

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