Apple expected to pass on some of its massive cash pile to investors

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At least, according to Wells Fargo.
Photo: Ste Smith/Cult of Mac

Analysts at Wells Fargo think that Apple’s going to start handing some of its massive cash pile to investors by increasing its dividend.

Ahead of Apple’s Q2 earnings later this month, Wells Fargo suggests that Apple will be looking to pass on some of the money that it’s accrued in the U.S. through repatriation. The firm also thinks that Apple is going to raise the number of shares that it buys back.

Wells Fargo analyst Aaron Rakers suggests that Apple will authorize $35 billion in share repurchases. While smaller than the $100 billion it spent in 2018, this is in line with what Apple spent the two years prior to this. Rakers also thinks that Apple will pay out $10.75 billion in dividends.

In total, Wells Fargo thinks that Apple will have around $129.6 billion in cash at the end of the financial quarter.

Good investment or bad investment?

Share buybacks and dividends are good news for investors. Nonetheless, the firm doesn’t have total faith in Apple as an investment opportunity. It struggles to see past weakened iPhone demand, which is likely to continue costing Apple. Wells Fargo thinks Apple will likely bring in $56.6 billion for the quarter, down from its previous estimate of $58.3 billion.

Its price target on Apple is $190. Currently, AAPL is trading at $204.53 after a year of extreme ups and downs.

Are you optimistic for Apple’s Q2 earnings? How do you perceive the company as an investment opportunity right now? Leave your thoughts in the comments below.

Source: Apple Insider