Apple's Repatriation a Plus, but Don't Expect a Windfall
We don't expect the firm's larger U.S. cash balance to lead to exponential increases in dividends and buybacks.
Brian Colello: Apple made a notable announcement this week regarding its contributions to the U.S. economy, the most notable of which for investors and stock-pickers is the company's disclosure of the tax repatriation it's going to pay the U.S. government, to the tune of $38 billion.
This is essentially in line we the math we would calculate on such a deal. If you think about Apple's $252 billion of overseas cash on-hand as of December and a 15.5% tax rate that the company has to pay on that, the $38 billion tax bill isn't particularly surprising.
Brian Colello does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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