The Cupertino, California based iPhone maker Apple Inc holds cash piles of around 137 billion US dollars and intends to disburse this load. However for this issue experts say the company must weigh the appeal of preferred shares over the higher buybacks and dividends demanded by many investors.
Last month Apple Inc. (NASDAQ:AAPL) disclosed that it is considering an increase in the quarterly dividend and share buybacks.The cash balance of company includes 23.7 billion US dollars of short term investments along with 16.2 billion US dollars of cash. The remaining amount of balance is invested in long term marketable securities.
Although each of the options has advantage whether its preferred shares or dividends however some analysts expect the preferred shares would benefit investors the most.
In an official statement company said it is considering preferred shares option for cash disbursement. Apple Inc. (NASDAQ:AAPL)’s directors have been working with Goldman Sachs Inc to explore the optimum way out. Some of the investors are of the view that Apple chief executive officer Tim Cook should focus on giving strong dividends, special dividends or share buybacks.
The companies that are under investors’ observation for Monday session include Google Inc (NASDAQ:GOOG), Lions Gate Entertainment Corp. (USA) (NYSE:LGF) and Nielson Holdings. The shares of these firms are expected to get stronger. Nielsen is expected to post 56 cents a share for its fourth quarter earnings.The entertainment giant Lions Gate Entertainment is expected to post third quarter earnings around 21 cents a share. Moreover, Owens & Minor, Inc. (NYSE:OMI) is expected to post fourth quarter earnings of 47 cents a share.
USG Corporation (NYSE:USG) is projected to report fourth quarter earnings of 30 cents a share. Annies Inc (NYSE:BNNY) is expected to post third quarter earnings of 14 cents a share.American Financial Group Inc is projected to post fourth quarter earnings of 64 cents a share. Conclusively TW Telecom Inc (NASDAQ:TWTC) is projected to report fourth quarter earnings of 15 cents a share.
AAPL shares surged 0.45% to $476.90 in pre-market on Monday. GOOG shares fell -0.68% to $780.00 in pre-market.