Apple’s Trickle Down: Does Cheap Credit, Massive Cash Hoard Give Value to Investors?
Apple has a ton of cash.
Too much cash, it seems — or at least, the company is getting sick of sitting on all of it. Apple was bored enough that someone took pocket change out of the vast vaults and snatched up Matcha.tv for anywhere around or more than $1.5 million as a project that could be the seeds of Apple TV, according to Venture Beat.
The company also looks like it’s going to roll out the iWatch at some point next year, a launch that no doubt took a fair amount of investment. But despite all of this, CEO Tim Cook and his team are still sitting on a mound of cash that investors have been drooling over since before Apple launched its first dividend. Now, it seems, they’re about to get a larger slice of the pie.
Cook has hinted at plans to return more cash to investors. Speaking in a recent quarterly earnings call, the chief executive highlighted his intention to repurchase shares and invest in Apple while returning more value to investors. “The vast majority of our incremental cash return will be in the form of share repurchases,” Cook said. “In addition to share repurchases, we are increasing our current dividend by 15 percent to further appeal to investors seeking yield.” The company paid $2.77 billion to shareholders Thursday with its current dividend.