Apple CEO Could Win Back Goodwill With A Dividend Increase

It seems like just yesterday (Feb. 27, to be exact) that Apple (NASDAQ:AAPL) CEO Tim Cook disappointed at least some of us by announcing … well, pretty much nothing at Apple’s annual shareholder meeting. It’s hard to believe a company that’s lost more than $300 billion in value in six months, which sits on over $137 billion in cash and investments and is fighting back a movement by Greenlight Capital’s David Einhorn to issue high-yielding preferred stock, could be spending its days wondering what to do to reward shareholders for hanging in. Here’s a hint — increase the dividend!

And according to Bloomberg analysts, that’s what might occur as Apple approaches the anniversary of last year’s announcement to reinstate its dividend after a 17-year break imposed by Steve Jobs. Analysts surveyed by Bloomberg anticipate a rise from the current $2.65 per share (quarterly) to between $3.31 to $5.30 per share, with the average estimate from six analysts coming in at $4.14 per share, or a 56% increase. And really, it’s not a stretch. Apple has the money both now and in the future to make it happen based on its cash balances, free cash flow, and even borrowing abilities.

Source: InvestorPlace

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