According to Will Power, senior research analyst at Robert W. Baird, Apple has some plans for its $137 billion stock pile of cash that it has saved up over the years. What he has to say is that Apple is planning on increasing the dividends and and instituting a large buy-back. From Power in the report:
I don’t think it’s any question we are going to have an announcement here at some point. I think we and the Street have been expecting something any day really for the past several weeks. I think you’ve seen that in the recent price action both speculation regarding a potential bigger dividend and probably more importantly, a sizable buy-back, I think that’s the biggest driver right now around the recent stock action.
Back in February, CEO Tim Cook offered some insight into the companies possible plans, and increasing the returns that shareholders see. This is the most likely plan for Apple, as it is unlikely, as Power points out, for them to do something such as a buyout or more investment in R&D. Apple has always been known to work on a “few great products,” so more R&D wouldn’t be Apple-like, and neither would a large buyout. Keep an eye open for anything coming soon.
What do you think? Interested in what Apple may do? Are you a shareholder, and if so what do you hope for? Let us know in the comments, or tweet me @TiP_Kyle.