Everyone knows that Apple
There's also no shortage on pundits telling Apple what to do with all that cash, ranging from dividends and buybacks to large acquisitions. But Morgan Stanley analyst Katy Huberty goes one step further than simple suggestions and says that Apple now is "more likely than ever" to put those greenbacks to work.
According to Huberty's projections, Apple would wield a $136 billion bank account by the end of 2012 unless newly anointed CEO Tim Cook does something with it. Apple lacks a track record of absorbing large acquisitions. Therefore, direct buybacks and dividends look more likely to help investors out in the long run.
So Huberty suggests starting a low-key 2.4% dividend yield, which would amount to about $8.4 billion a year at today's share prices. That would still leave plenty of cash flows available for buyouts, buybacks, or saving for a biblical flood of a rainy day.
She also notes that Apple willingly pays some taxes on foreign earnings, in stark contrast to fellow cash-rich tech giant Cisco Systems
I totally understand that Apple wants to keep some dry powder on hand just in case a large challenge or some enormous challenge turns up. But there are limits to reasonable caution -- $136 billion would be almost enough to buy Oracle
A 2.4% yield might not sound like much, and it's slightly less than the least-generous payouts on our Income Investor scorecard: Coca-Cola
Would it be too much to ask Apple to do its shareholders the same market-crushing favor? Share your thoughts in the comments section below.
Fool contributor Anders Bylundholds no position in any of the companies discussed here. No, not even Apple.The Motley Fool owns shares of Oracle, Apple, Cisco Systems, and Coca-Cola and has created a bull call spread position on Cisco Systems. Motley Fool newsletter services have recommended buying shares of Cisco Systems, McCormick, Apple, and Coca-Cola, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio, follow him on Twitter or Google+, or peruse our Foolish disclosure policy.