Apple Inc.’s ability to pay a special dividend, viewed by investors as unlikely, is limited because almost 70 percent of its cash is outside the U.S.
While dozens of companies are paying special one-time dividends ahead of a potential jump in taxes, Apple probably won’t join in partly because so much of its $121.3 billion in cash is held overseas, according to analysts. Apple is likely to focus on boosting its quarterly $2.65-a-share dividend, said Brian White of Topeka Capital Markets Inc.
Apple reinstated dividends starting in the quarter beginning July 1 and adopted a plan to buy back $10 billion in shares over three years. Investors saw that as a sign Chief Executive Officer Tim Cook was more willing than late co-founder Steve Jobs to channel part of cash and investments directly to investors.