Posted March 20, 2013 by Sarah Smith in Technology

50% High in Apple’s Dividend; Counts to $16 Billion

50 High in Apple’s Dividend; Counts to $16 Billion
50 High in Apple’s Dividend; Counts to $16 Billion

As per the analysts and survey done by Bloomberg, it is stated that Apple Inc. is all geared up to enhance the dividend share by more than 50 percent, thus providing its investors with one of the highest measurements in the industry of US technology.

It is estimated that probably Apple will lift off its quarter dividend share of 56 percent to average $4.14 per share value, with a yearly payout of $15.7 billion, as stated by the survey of six analysts. It is stated that the resulting measurement will be much higher than the 3.6 percent, which will count to almost 84 percent in the paying dividend of the Standard & Poor’s 500 Index. Gene Munster, the analyst at the Piper Jaffray Co. states that Apple can enjoy payout of fund with the current cash flow situation without having to use its overseas profit.

Tim Cook, who is the head executive officer, announced a buyback of $10 billion, which is faced with pressure to opt for some bolder steps in order to make Apple pay for its $137.1 billion investment as well as cash. It is observed that investors, such as Greenlight Capital Inc. is also driving for more monetary growth as the competitive market slows down with the intensity of rivalry from Samsung Electronics Co.

As per the words of Brian White, the analyst who works at Topeka Capital Markets based at New York, “The cash accumulation has become too much; thus making it irrelevant about the forecast of situation, as there was never need for so much cash.” He has rated the buying price of shares at target cost of $888.

The share of Apple got a high of 2.7 percent, which is to $455.72 in the market of New York. Since the month of September 19th, the stock market of Apple got declined by 35 percent, in comparison to its 6.2 percent profit in the index of Standard & Poor’s 500 Index.

As the anniversary of Apple approaches, many companies are announcing various dividend schemes and changes, thus adding fuel to the speculation in regard to Cook’s plans and announcements. The CEO of the company had announced plans of reestablishing the dividends last year, unlike Steve Jobs who worked towards preserving the capital assets. Bloomberg analysts are estimating dividend reestablishment, ranging between $3.31 and $5.30 against per share.

According to statement from Apple, it is known that they are in discussion about how to manage and utilize the cash, added with options for higher dividend and buybacks. Spokesman of the company however refused to comment on their new dividend program and plans immediately.

Speculations state that there is scope that Apple will be adding $40 billion to its financial balance sheet of the current year. In the US market, research shows that Apple will be generating average of $15 billion.

Sarah Smith

Sarah Smith a native of Chicago, Sarah received a masters in broadcast journalism from the Medill School of Journalism at Northwestern University. She also graduated Summa Cum Laude from Loyola University-Chicago. Sarah's work has been recognized by the Rhode Island Press Association, the National Association of Black Journalists and the Hugh M. Hefner First Amendment Foundation.