Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL): This Next Round of Cash is On Us!

Apple Inc. (NASDAQ:AAPL) can certainly be in the mood to celebrate Tuesday, as the company reported quarterly revenue and earnings numbers that both rather easily beat analysts’ expectations. OK, so maybe the expectations weren’t exactly the really lofty ones that analysts have been known to make in the past regarding Apple, but in the wake of all the negativity surrounding the company and the 40-percent stock plunge off a high-dive since September, beating any expectations would be a pleasant surprise.

And it seems that Apple Inc. (NASDAQ:AAPL) may be so giddy with excitement that it made a couple of significant announcements to address the company’s jaw-dropping $145 billion cash pile (which is about 40 percent of the company’s market cap as of the close of trading Tuesday). And either way, investors in the stock are likely be flying inot the market Wednesday to make sure to buy up what they can.

Should this Concern Apple Inc. (AAPL) and Google Inc (GOOG)?

Apple Inc. (NASDAQ:AAPL) announced on its earnings conference call – which my colleague, Jake Mann, followed as it happened – that it would be increasing its dividend from $2.65 per share to $3.05 per share, and increase of about 15 percent and an increased cash outlay of about $150 million per quarter ($600 million for a year) and upping the total cash outlay over the next year to $3.4 billion for dividends.

That is one way that some analysts thought Apple Inc. (NASDAQ:AAPL) should spend its cash. But some thought Apple would go one way with dividends or another way with a stock buyback. But how many in your pool picked “both”? Winner, winner, chicken dinner! The second item of news came with the Apple announcing it would accelerate its stock buyback program; while specific numbers weren’t mentioned, $60 billion is being mentioned in the press, which would be a record for any company and is a six-fold increase of the current $10 billion buyback the company was executing currently. Cook spoke about a willingness to take on a little bit of debt in order to secure this more robust buyback.

What are your thoughts about these two itesm regarding Apple Inc. (NASDAQ:AAPL) stock and its cash pile? Are you already greared up to get in on that cash, or will you be calling your broker Wednesday morning? Give us your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.