Apple ended the first calendar quarter with a record $33 billion in cash and short-term investments and $160.4 billion in long term investments. It implies that at present, the company has a cash pile of $194 billion, outsmarting all other non-financial companies in the Standard & Poor’s 500 by a mile.
Apple’s cash and investments surged 8.6% from the quarter ending in December. At present, the iPhone maker has a cash reserve greater than Microsoft’s and Google’s combined, according to USA Today. The company has invested much of its cash in Treasury Securities and other long term investments.
At the end of last week, Bruce Greenwald, the founding director of the Heilbrunn Center for Graham and Dodd Investing at Columbia Business School, sat down for a Fireside Chat with Li Lu, the founder and chairman of Himalaya Capital as part of the 13th Columbia China Business Conference. The chat spanned many different topics, Read More
For the most recent quarter, Apple posted strong iPhone sales, outperforming profit and revenue estimates. Apple posted a profit of $13.8 billion or $2.33 per share on sales of $58 billion. The Cupertino, Calif.-based company performed significantly better than all other Silicon Valley companies.
On Monday, Apple shares closed up 1.82%, and in after-hours trading, shares were up 1.33%. Year to date, the stock is up by almost 18%.
More for investors
For investors who are more focused on dividends and stock buybacks, Apple already announced an increase in its capital return amount, which suggests that the company is pushing its buyback plans from $90 billion to $140 billion. In 2014, the company returned $45 billion, more than its $44.5 billion profits on stock repurchases and an additional $11.2 billion in dividends.
Additionally, higher dividends will be paid at 11%, which is the 20th biggest dividend increase in the history of the S&P 500, according to Howard Silverblatt of S&P Dow Jones Indices. With an increase in the dividend to $12.1 billion each year, Apple becomes the largest dividend paying company, above Exxon at $11.6 billion, according to Silverblatt.
Apple CEO Tim Cook said, “We believe Apple has a bright future ahead, and the unprecedented size of our capital return program reflects that strong confidence.” Cook added that although a major focus is share buybacks, the company is aware that the dividend is very important to many investors, which is why it is increasing it for the third time in less than three years.