It was an year going really well for Apple and everything it touch turned into gold and everything it did got praised. On March 19th 2012, Apple announced that it will spend $45 billion dividends and share buyback programme for the next 5 years. Right now few analysts feel that it is high time for Apple to announce a bigger dividend program and a higher share buyback program. While Apple pooled up $137.1 billion in cash reserve by the end of December 2012, Brian White of Topeka Capital said that the money will grow to $241 billion by the end of financial year, 2015. As Apple’s money pile is growing at a good rate investors started suggesting a better use for the cash reserve.
White believes that Apple could increase its cash dividend from current amount of $2.65 per share to between $3.75 and $5.00 per share on a quarterly basis, and increase its stock buyback program to as much as $100 billion as part of the 5-year initiative.
In previous shareholder meeting help in February 2013, CEO Tim Cook admitted he is not very happy with Apple’s stock performance over the past 6 months but he is not too worried about the short term effects. Just a week ago Warren Buffet of Berkshire Hathaway said that he believes Apple should buyback more stock as it is trading at a very low price right now. It would be a wise investment for Apple, he also suggested that Apple needs to concentrate on running the business and stop worrying about the stock price.