Come on, do you even own AAPL shares. If so, you should know they already announced a 45 Billion buyback and added the dividend last year. This distribution was to be over a 3-year period. News is that they will increase this 45 Billion to 60 Billion buyback and increase the current dividend.
I'm super long, but let's not get ahead of ourselves because most of that cash is off-shore and they have only taken the taxes on another 15 billion, so I don't expect that much more.
The only thing that will take us back over $500 is a surprise stock split announcement. I'm very hopeful of this type of action because it wouldn't cost the company anything and certainly drive the shares up. I really don't see the preferred stock announcement coming anytime soon, but a stock split is possible.
No The 45billion plan was a 3 year plan announced last March 19th 2012..... Which included the $10.60 a year divy which over 3 years works out to about 32 billion with the remainder of 13 bill going to buyback over a 3 year period....That was the original plan.
There is no current plan with a 45 billion buyback!!!!! So The question is if You Own shares or did not know what the original plan was last year stated on March 19th 2012.
Apple can Buy back shares with overseas cash just like IBM did and would not be taxed on it....You can look up what and how IBM did this using overseas brokerage houses to buy back shares .
So It is very simple...yet Apple is making things complicated...all by themselves.
Apple can simply use 40billion...of overseas cash and buy back shares.....and still have 60billion overseas and not touch the 45bill in The USA....
Then Not an issue at all for Apple to Issue a divy of $20 a year or $5 a Quarter and only use FCF and continue to add to Cash hoard.
Apple does not need a stock split and if there is one it does not mean the share price will climb....Bigger Buyback and Divy will help but Apple in the end needs to start being the leader not the follower as far as innovation goes. Apple is in need a of Totally new product to drive revenue growth. It is that simple.....
I think the 45 billion is for buyback + dividend. 10 of that 45 is for buyback. though I don't think any announcement is coming, soon. It's fun to scare the shorts a little. The shorts have had fun for a while:-)