Money Matters - Simplified

Apple CEO To Decide On $98 Bn Cash Hoard

While Apple Inc. sets to announce the fate of its $98 billion cash pile, the investor and trade analysts highly predict the dividend announcement from the world’s numero uno in consumer electronics.

The Company reports had confirmed earlier that Monday’s meeting, to be held by Apple chairman Tim Cook, would only have $97.6 billion cash hoard on its agenda. Cook would also be accompanied by the Company’s Chief Financial Officer, Peter Oppenheimer added reports.

Investors call for dividends
Meanwhile, the Company is facing demands from large investors and shareholders for the distribution of dividends from the piled up stock. The Cupertino, California-based company started facing all the more investors pressure soon after the Company reached a landmark $600 per share few days back.

Apple’s $98 billion excess in cash and securities, if distributed as dividends to the investors, would come as $11.71 to $17.57 or 2 percent to 3 percent per share suggests Shaw Wu, a trade analyst at Sterne Agee.

In regard to the decision of dividend payout to shareholder Wu said it "is probably going to be pretty binary. It's going to be either yes or no. Many are hoping the answer is going to be yes.”

Higher sales piled up cash
Analysts are predicting cash returns to the shareholders on the basis of CEO Cook’s address at the Apple’s Annual General meeting in February.

"Frankly speaking, it's more than we need to run the company," Cooks maintained during the AGM.

Bumper iPad and iPhone sales have resulted in cash pile for Apple Inc. approx $98 billion. Apple, world’s smart-phone and tablet giant yielded $16 billion in cash during first quarter 2012 and is expected to make around $75 billion in cash this year, as per Wu’s estimates.

Amid profit sharing, buzz has it that the electronic giant may also dole out excess cash in form of quarterly dividends, annual payouts or share buyback options to investors.