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Apple Board Has Been "Considering" Dividends and Buybacks Since 2005
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Put it in the time capsule for the post nuclear society. Cockroaches. Politicians and citizens don't get it. Ironic a PPV 30 minute commercial in average rotation would solve that.
Tax Holiday
Let's not forget how much Apple is sitting on overseas, and refuses to bring that money back into the US until they can get a "Tax Holiday" which they've been lobbying Congress for aggressively. While they may produce stuff we all like, they still have shirked away from paying their fair share ("what's due is due") in corporate taxes.
Let's not forget how much Apple is sitting on overseas, and refuses to bring that money back into the US until they can get a "Tax Holiday" which they've been lobbying Congress for aggressively. While they may produce stuff we all like, they still have shirked away from paying their fair share ("what's due is due") in corporate taxes.
They've earned it in foreign territories and the U.S. won't allow them to spend and invest it here without taking a piece of it. Yeah, Apple's the evil one in this situation...
I'd rather see a stock split of 5:1 when the price reaches $500/share, though 10:1 would be much better.
For me, $50/share would make me a millionaire when it reaches $200 again.
A split means nothing. It doesn't change the company's market cap, the percentage of the company that you own, your cost basis, etc. It's only the perceived cost of the stock. Just ask GOOG or BRK-A.
A 10:1 split today followed by a gain to $200 is the exact same as the stock going to $1578 without a split. Which... Isn't. Going. To. Happen. At least not for a loooong while.
They already paid taxes on that income, in the countries the money was earned in. Bringing that money back into the US would cost another 35% on what's left.
What would you think of earning $100 overseas, losing $35 of that to local taxes, then losing another $23 just for bringing it home - leaving you with just $42? Would be fair to instead leave the money where it is, and apply it there without further taxation.
Maybe they are saving up to buy out something big. Wonder what it could be!
Before anyone says it, they wouldn't be able to buy any of the following companies on competition grounds:
Before anyone says it, they wouldn't be able to buy any of the following companies on competition grounds:
- Microsoft
- Samsung
- HTC
- Motorola (soon to be Google's)
- ARM Holdings
- FoxConn
- LG
- etc
That literally isn't going to happen, but it is still unclear what the short term limit is for Apple. Consider that there are still riots for their products even four months after they were introduced. And that was for the largely derivative iPhone 4S! What happens if demand remains about the same but eventually supply catches up? What happens if demand increases? What happens if iPhone 5 is truly awesome? Consider if increased manufacturing capabilities allow for 100 million iPhone 5s to be made in one quarter? Do you think Apple could sell that many? It is possible that they could. Chinese manufacturers are dramatically increasing their capabilities of producing things like the iPhone. 100 million a quarter production might be a possibility. Imagine if Apple could ship world wide full stock supplies within a quarter of announcement instead of this rollout process? Right now Apple is deeply constrained by supply. By the time they get into a market like China or Brazil, the product is getting a little long in the tooth. But that is a supply problem, not a demand problem. And it is a supply problem that might be getting corrected to a large extent this year.
So Apple going from $400 to $800 in two years doesn't seem that far fetched.
re original article
i like seeing aapl cash pile grow - keep going aapl
just split the stock 4 to 1
cash is king
you go aapl
i like seeing aapl cash pile grow - keep going aapl
just split the stock 4 to 1
cash is king
you go aapl
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Sweet. Pay me for the one stock I own!
Sweet. Pay me for the one stock I own!
They are not splitting the stock as long as Google doesn't split theirs. While it is irrational, I suspect that Apple doesn't like that Google's stock price is higher than theirs (yes, Apple's market cap is much more, but it isn't the number that gets reported on the TV every day). Certainly it has now become standard in the tech business to have a triple digit stock price. The fact that some poor shareholder can't buy a full share is meaningless to Apple as that makes up an insignificant % of their shareholders.
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Buy an island. Set up a new country. Tim Cook as president. Invite rich man to take up citizenship. Invite hot women as bartenders. There we go.
Exactly
Yes, yes, and yes. To pay a dividend to US shareholders it would certainly have to repatriated. Any repatriated funds would be taxed at the 35% corporate tax rate minus the taxes paid in the country the money was earned in.
And then the shareholders - the owners of the company - would pay an additional capital gains tax on top of that, which would be 15% in 2012, but then in 2013 goes up to whatever the individuals income tax rate is.
So if Apple decide to repatriate $50B in overseas cash, over $26B would go to the US government.
Yes, yes, and yes. To pay a dividend to US shareholders it would certainly have to repatriated. Any repatriated funds would be taxed at the 35% corporate tax rate minus the taxes paid in the country the money was earned in.
And then the shareholders - the owners of the company - would pay an additional capital gains tax on top of that, which would be 15% in 2012, but then in 2013 goes up to whatever the individuals income tax rate is.
So if Apple decide to repatriate $50B in overseas cash, over $26B would go to the US government.
Companies do not always retire securities when they buy them back. Sometimes they hold onto them and reissue them to employees or resell them. By holding them, they maintain their value.
If nothing else, the process of decommissioning stock is a bit of a pain. It is much less bother just to keep them until you want to put them back on the market or give them to your workers.
Splits can drive the value of a stock through the roof. Many people who don't have much money want to own a few hundred shares of Apple today. Because of it's price, they can't buy in. By splitting the shares, they let a larger population buy the stock. The more people who can buy, the more demand. The more demand, the better the total valuation. This can also help with product sales as, people are more likely to purchase a product, if they own stock in the company.
Silliness
I doubt seriously if Apple cares what the share price is of their stock vs. Googles. Market capitalization is the true measure of a companies value, and profits are what Apple cares about. That and the profit margin.
So some "poor shareholder" (that is sure is an oxymoron) can't afford a share at $486, but can afford a share at $100? If you are only buying one share of stock that is not a very wise investment strategy. Investing in a mutual fund that holds a large quantity of Apple stock while also being diversified in other stocks is a better way to invest. That way you can still own Apple shares and benefit from its success. Putting $100/mo in a 401k mutual fund will be a lot better investment than buying a share of Apple stock each month, or even one share of $486 Apple stock every four months.
The only way you might see Apple perform a stock split was if they first did a share buyback with some of the cash they are sitting on. This has the effect of transferring value to the shareholders - it will raise the price of the shares they own - without forcing them to pay a tax on a dividend. Doing a share buyback could raise Apple's stock to a level where they felt it should be split.
I doubt seriously if Apple cares what the share price is of their stock vs. Googles. Market capitalization is the true measure of a companies value, and profits are what Apple cares about. That and the profit margin.
So some "poor shareholder" (that is sure is an oxymoron) can't afford a share at $486, but can afford a share at $100? If you are only buying one share of stock that is not a very wise investment strategy. Investing in a mutual fund that holds a large quantity of Apple stock while also being diversified in other stocks is a better way to invest. That way you can still own Apple shares and benefit from its success. Putting $100/mo in a 401k mutual fund will be a lot better investment than buying a share of Apple stock each month, or even one share of $486 Apple stock every four months.
The only way you might see Apple perform a stock split was if they first did a share buyback with some of the cash they are sitting on. This has the effect of transferring value to the shareholders - it will raise the price of the shares they own - without forcing them to pay a tax on a dividend. Doing a share buyback could raise Apple's stock to a level where they felt it should be split.
Actually, I honestly believe this keeps the value of Apple's stock artificially low. Some index funds and mutual funds are *required* to diversify in this manner and auto-sell when something grows that high.
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As a shareholder: Apple is NOT sitting on it. They've been investing a large portion of it in to the supply chain, giving loans to manufacturers for preferential treatment, etc. They leverage it well.
With this obscene amount of money stockpiled, why dont Apple do the decent thing and lower the prices of some of its kit? Or donate a good chunk to charity, say a cancer charity for instance (if they had when they had $50 billion perhaps steve jobs would still be here?)
Hoarding that gross amount of money just laughs in the face of the young teenager who has saved and saved and saved to buy his first mac.
Matt
Hoarding that gross amount of money just laughs in the face of the young teenager who has saved and saved and saved to buy his first mac.
Matt
Why is it a detriment to America? Other than the products being designed in California my Apple purchases have nothing to do with the US. I bought my MBA and paid GST on it. Apple Canada then had to take their income from that purchase and pay corporate tax on it. The tax has already been paid but the US government wants to tax it again. Why? Apple just wants to bring it home so they can invest locally, but to do that they lose 30%. I totally understand why they leave it outside the US and invest in foreign markets.
and theres people suffering from job loss and poverty. they should bring their factories back from china and put them in america where people will benefit from the move, then they can say designed and made in california...
