A number of Google shareholders are asking for the Internet giant to follow in Apple’s footsteps and return part of its $44.6 billion in cash to investors, Bloomberg reported on Thursday. Google has more cash as a percentage of market value than five of its largest competitors, including Apple. The iPhone maker recently reinstated a dividend and unveiled plans for a $10 billion stock buyout last month. Google is currently the only U.S. technology company with a market value of more than $125 billion that doesn’t offer a regular shareholder payout. The Mountain View-based company’s cash has almost doubled since 2009, and it has increased by between $2 billion and $3 billion each quarter. A dividend would ease the tensions between the company and its investors, who have endured a 1.5% decline this year. “There’s a pattern here that makes sense, and I’m sure Google will figure out the right thing to do,” said Michael Holland, chairman of Holland & Co., a New York investment firm that oversees more than $4 billion in assets. “It’s a little bit of a victory dance, if you will, to be able to have the sort of cash surplus that a company like Apple does and Google does. To share some of it is sharing the victory dance.” More →
Apple on Monday hosted a conference call to reveal the fate of at least some of the $100 billion in cash and cash equivalents the company has amassed over the past few years. Apple announced that it plans to repurchase $10 billion of stock over the next three years, in addition to paying out a $2.65 quarterly dividend. Over the next three years, the compay expects to spend $45 billion. Apple’s press release follows below. More →
Apple has just alerted the media that it plans to discuss what the company will do with its $100 billion in cash tomorrow at 9:00 AM ET. The most logical assumption is Apple will issue a dividend to shareholders. Or buy part of Samsung or something crazy. Press release follows.
During the company’s annual shareholders meeting on Thursday, CEO Tim Cook acknowledged that Apple has more money “than we need to run a company.” Apple’s board is currently engaged in “active discussions” about what to do with the $100 billion in cash it has on hand, hinting at the possibility of a dividend. “The board and management team are thinking about this very deeply,” Cook said. A dividend returns a portion of the company’s profit to shareholders, and the last time Apple paid one was in 1995 prior to the return of Steve Jobs. Investors have pushed the company to again pay a dividend, hoping it will boost Apple’s stock price by bringing in a new breed of investors, reports Bloomberg. “You can be assured we are working as hard as ever this year to deliver an incredible year and some products that will blow your mind,” Tim Cook also noted during the meeting. Apple is expected to release a new iPad next month, an HDTV this summer and a redesigned iPhone this fall. More →