Apple Inc. (AAPL)’s Big Move: Does Cupertino Need A Loan For Billions?

If you’re now thinking it’s absurd that making a company issue debt to more effectively move cash back onshore, which will have the net effect of a tax-free offset, be thankful that the company is choosing to be conscientious. A structure by which companies are penalized for bringing money home, or forcing them to resort to accounting ploys, might explain why so many have moved operations overseas in the first place.

After Cisco‘s last earnings call, CEO John Chambers said that as long as U.S. tax policy forced money to remain abroad, he would manage his company’s cash to the benefit of shareholders. He pushed for tax reform in his comments but refused to alter company policy to serve short-term needs. Apple Inc. (NASDAQ:AAPL) faces the same issue and is responding similarly.

While the new capital plan may not fully address the desires of some shareholders, it goes a long way to putting cash back into the hands of investors. With the heightened dividend and attractive valuation, the stock is cheap and deserves an allocation. Apple Inc. (NASDAQ:AAPL) doesn’t need a loan, but it’s taking one to satisfy the best interests of its shareholders.

The article Does Apple Need a Loan for Billions? originally appeared on Fool.com.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Apple and Cisco Systems (NASDAQ:CSCO) and owns shares of Apple.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.