“With the new tax structure we expect Apple will bring $214 billion back to the U.S. using a 15.5% one-time repatriation tax rate,” Gene Munster writes for Loup Ventures. “We don’t expect this cash will change Apple’s M&A philosophy, which will likely continue to be focused on sub-$1 billion technology acquisitions.”
“We do anticipate Apple will increase its share buyback by $69 billion, which will be added to the $166 billion that Apple has already spent on share repurchases from Jun-2012 to Sep-2017,” Munster writes. “Additionally, we expect Apple will increase its annual dividend by 15%, higher than the 10% increase they announced in April of both 2017 and 2016.”
“We believe Apple will maintain its debt level at the $104 billion. In theory this will leave Apple with about $150B in cash, but in practice it won’t get that low,” Munster writes. “To give a sense of Apple’s current cash generation, the company generated $31 billion in cash from Sep-16 to Sep-17. If we assume $30 billion in annual cash generation for the next 4 years implies a 2022 cash ending balance of $270 billion, unchanged from the $269B today.”
Read more in the full article here.
MacDailyNews Take: To quote Carl Sagan, “Billions and billions.”
AAPL shareholders will likely be happy if this comes to pass.
We’ll be happy when that gorgeous silver cylinder of pre-Christmas Christmas beer is tapped! Posthaste, beloved interns, posthaste!
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