If we learned one thing from Apple's most recent quarterly earnings report, it's that they're sitting on a nice sum of cash. With their $76.2 billion reserves, Apple could buy Goldman Sachs, whose market value stands at $65 billion, as we noted when the company released the report this Tuesday. Since they likely won't blow it all on America's favorite investment-bank, some have other suggestions for how Apple could handle their riches.
Reward your investors
The company is doing well, they could show their appreciation for those who've financially supported them--those who helped Apple reach their current level of success, "If they can't find ways to use it to grow, they should be returning it to shareholders," Tim Ghriskey, chief investment officer of Solaris Asset Management, which owns Apple stock, told the Wall Street Journal. Not only would paying dividends reward shareholders, but it could help Apple attract other interested investors managing value and growth and income funds, analyst Toni Sacconaghi explained to the Wall Street Journal.
It's unusual for Tech companies to give back to investors. "Dividends are typically associated with mature, slower-growing companies, preferring to view themselves as young and faster growing," suggests the Wall Street Journal. And that might not be the best use for Apple's riches anyhow. Giving money to shareholders would only perpetuate internal wealth, and not facilitate much growth for Apple, argues Forbes' Eric Jackson, who doesn't see the value in paying dividends. "Cash is to be used to grow the company. ... They have several enormous growth opportunities ahead of them to keep up that pace, but they will take cash. I would rather Apple management have access to that cash--dry powder--than shareholders."