Next Apple iPhone: While many people continue to wonder when Apple Inc. (NASDAQ:AAPL) is going to release its next iPhone or new device, other Apple bulls are thinking about something else: what is the Cupertino-based company going to do with all that cash?
With $137.1 billion in cash on hand (and that’s and the end of last quarter, keep in mind), it appears that Apple Inc. (NASDAQ:AAPL) has more money than it knows what to do with. Of course, this is a good problem to have.
A few months back, our very own Jake Mann wrote this article for Seeking Alpha: Is Apple’s Secret Hedge Fund Prepping For A Dividend Boost?
In the article, you will find a chart that details the latest quarterly changes in Apple Inc.’s cash hoard.
With the company projected to finish FY2015 with more than $300 billion in investable cash, the question of “what is next” continues to grow.
According to a recent report by CNN Money, relying on information from Bernstein Research’s Toni Sacconaghi, Apple Inc. “has been holding “widespread discussions” with key investors to get input on its plans to return more of its $137.1 billion cash hoard to shareholders.”
At this point, it does not appear to be a question of “if” Apple Inc. (NASDAQ:AAPL) will return some of its cash to shareholders. Instead, the real question is “when” this is going to happen.
Of course, this question has been raised many times over the past few months without any concrete answers being found.
Sacconaghi, however, appears to have his own thoughts on what Apple Inc. (NASDAQ:AAPL) has in store for investors.
Despite the fact that investors have been hoping to hear from the company for a couple months on this matter, nothing has been announced just yet. And Sacconaghi does not believe this is going to happen during Apple’s Q2 earnings report next week.
Sacconaghi believes that this announcement is too big to be made in correspondence with the earnings report. For this reason, he is expecting the company to wait at least a few weeks after the April 23 report to talk about any sort of dividend related news.
So, at this point, the wait continues. While investors continue to be anxious about what the future holds, Apple Inc. is taking its good old time. Hopefully, Sacconaghi is correct in thinking that an announcement will be coming a few weeks following the company’s Q2 earnings report.
What are your thoughts on this, Apple Inc. (NASDAQ:AAPL) investors? Do you agree with Sacconaghi? Share your opinion in the comments section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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