“Apple Inc. has an enormous pile of cash — about $163 billion, to be exact. So how will the tech giant follow through on plans to get that $163 billion down to zero?” Kinsey Grant reports for TheStreet. “‘We think Apple leans toward buybacks with the potential to increase the dividend yield closer to other large technology companies,’ said UBS analysts in a February 14 note. The fastest means of getting cash to zero would be aggressive buybacks, while another slower option would be doubling the buyback program and increasing the dividend yield.”
“According to analysts, the most likely scenario is that Apple reduces its share count by 7% per year for the next six years and boosts its dividend yield to 3%, achieving net zero cash by fiscal 2023,” Grant reports. “Should such an ‘accelerated’ share buyback program be announced, Apple will likely enact further upward revisions to earnings estimates.”
“Apple, an Actions Alerts Plus portfolio holding, has historically accounted for between 1% and 4% of the stock’s daily trading volume,” Grant reports. “‘We assume Apple could reach a maximum of 5% of daily trading volume without impacting the price, if it intends to aggressively buy back stock,’ UBS said.”
Read more in the full article here.
MacDailyNews Take: Aggressive, accelerated buybacks with repatriated overseas profits would be good news for AAPL shareholders.
Think buybacks and dividends, not major acquisitions. — MacDailyNews, January 5, 2018
What Apple will likely do with their repatriated $207 billion – January 22, 2018
What Apple could buy with all its cash – January 19, 2018
Here’s what Wall Street thinks of Apple’s cash repatriation plan – January 18, 2018
UBS: Buy Apple as company could acquire more than $120 billion of its stock in two years – January 8, 2018
GBH: Apple likely to repatriate $200 billion of its $252 billion foreign cash hoard – January 5, 2018