image source: Today’s iPhone

BY EVAN THOMAS

Your Apple stock might be about to pay off a little extra. Apple’s holding a conference call Monday morning before the markets open to announce plans for its money pile, and rumor has it a dividend may be on the way.

CEO Tim Cook and CFO Peter Oppenheimer will be talking to investors and media reps this morning at 9 a.m. Eastern time. Cook hasn’t said anything concrete about Apple’s cash plans at his various appearances since he became CEO, and The Verge says investors and analysts are anxious to see something — anything — happen with the money.

“Some investors have called for a big dividend payout, others want to see it invested in acquisitions, but very few people are calling on Cupertino to continue to sit on it for much longer.”

Apple’s stock briefly topped $600 a share last week. Aegis Capital’s Stanley Crouch says a dividend on those shares is most likely — and makes the most sense.

“The argument’s always been ‘let’s reinvest it in product and development.’ But Apple’s line item on that basis, even though they are very active in that area, is so minute compared to the free cash flow...”

Slate cites a Moody’s analysis, which says Apple represents about 12 percent of total corporate cash. So whatever Apple decides to do is likely to make a big splash.

“Basically Apple all alone represents a very non-trivial share of the entire corporate sector’s cash. It’s a big enough share that this one company’s decision can have macro consequences."

TechCrunch speculates: what do you do with nearly $100 billion?

“Will it be something philanthropic? A product? An acquisition or ten? The purchase of a small country? The start of a new one? A dividend? To be honest, there’s enough cash there to do all of the above, and then some.”

Apple’s press release says cash is the only thing being discussed, so don’t expect an early quarterly update.

 

Apple to Announce Plans for Cash

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Mar 19, 2012

Apple to Announce Plans for Cash

image source: Today’s iPhone

BY EVAN THOMAS

Your Apple stock might be about to pay off a little extra. Apple’s holding a conference call Monday morning before the markets open to announce plans for its money pile, and rumor has it a dividend may be on the way.

CEO Tim Cook and CFO Peter Oppenheimer will be talking to investors and media reps this morning at 9 a.m. Eastern time. Cook hasn’t said anything concrete about Apple’s cash plans at his various appearances since he became CEO, and The Verge says investors and analysts are anxious to see something — anything — happen with the money.

“Some investors have called for a big dividend payout, others want to see it invested in acquisitions, but very few people are calling on Cupertino to continue to sit on it for much longer.”

Apple’s stock briefly topped $600 a share last week. Aegis Capital’s Stanley Crouch says a dividend on those shares is most likely — and makes the most sense.

“The argument’s always been ‘let’s reinvest it in product and development.’ But Apple’s line item on that basis, even though they are very active in that area, is so minute compared to the free cash flow...”

Slate cites a Moody’s analysis, which says Apple represents about 12 percent of total corporate cash. So whatever Apple decides to do is likely to make a big splash.

“Basically Apple all alone represents a very non-trivial share of the entire corporate sector’s cash. It’s a big enough share that this one company’s decision can have macro consequences."

TechCrunch speculates: what do you do with nearly $100 billion?

“Will it be something philanthropic? A product? An acquisition or ten? The purchase of a small country? The start of a new one? A dividend? To be honest, there’s enough cash there to do all of the above, and then some.”

Apple’s press release says cash is the only thing being discussed, so don’t expect an early quarterly update.

 

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