IB Net Payout Yields Model

Apple: Unlikely To Spend Large War Chest

Apple remains in an enviable position with a massive cash position.
The tech giant faces a large repatriation tax bill payable over eight years.
Previous capital allocation moves favored maintaining large cash balances contrary to analyst calls for large capital returns or a mega acquisition.
A strong war chest reduces investment risk.
A lot of discussion surrounds whether Apple (AAPL) will ramp up stock buybacks and acquisitions due to the repatriation of foreign earnings provision in the Tax Cuts and Jobs Act. A couple of analysts suggest a ramp up in stock buybacks while my previous research doesn't back this theory due to a big repatriation tax hit.
Read full article on Seeking Alpha. 

Disclosure: Long AAPL. Please review the disclaimer page for more details. 


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