If you’re among the many shareholders concerned about Apple’s recent stock market performance, you just might be in luck. A new report from Quartz claims that Apple will likely issue a larger dividend, or begin a share buy back program in the near future.
Apple is leaning toward additional dividends or a share buyback program as part of its effort to return more cash to investors, according to sources. The US tech company could announce the move this spring, potentially in conjunction with a product announcement, the sources said.
Apple has been under pressure from hedge fund manager David Einhorn of Greenlight Capital to return some of its more than $137 billion in cash to investors. Einhorn has called for Apple to pay out perpetual dividends through a mechanism he’s dubbed as “iPrefs.” Apple has hired Goldman Sachs to help it assess its options, especially in light of Einhorn’s moves, the sources said.
The report is interesting, both because it was scooped by Quartz rather than Bloomberg or The Wall Street Journal – and also because Apple doesn’t have a particularly open attitude towards Einhorn’s claims (and despite the fact that Einhorn dropped his lawsuit).
Nonetheless, it could be a solid move to help restore investor confidence again, which could help bring Apple’s stock price and market cap closer to last year’s historic highs.