Apple Inc.'s ability to pay a special dividend, viewed byinvestors as unlikely, is limited because almost 70 percent of itscash is outside the U.S.

While dozens of companies are paying special one-time dividendsahead of a potential jump in taxes, Apple probably won't join inpartly because so much of its $121.3 billion in cash is heldoverseas, according to analysts. Apple is likely to focus onboosting its quarterly $2.65-a-share dividend, said Brian White ofTopeka Capital Markets Inc.

Oracle Corp., Wal-Mart Stores Inc., Costco Wholesale Corp. andat least three dozen other companies have announced specialdividends this quarter, according to data compiled by Bloomberg.The payouts come ahead of a potential rise in the top federal taxrate on dividends to 43.4 percent from 15 percent next year as partof the so-called fiscal cliff, a blend of tax increases andspending cuts that will take effect if U.S. lawmakers don't forge abudget deal.