He noted more than 0 percent of the cash repatriated during a 2004 tax holiday was used for stock buybacks and also also also dividends. However, Ives believes companies will use 70 percent that will time for capital returns and also also also use the remaining 30 percent for acquisitions, investment spending, research and also also also development.
“We believe accelerated buybacks, another dividend hike, and also also also potentially larger M&A will be the trifecta of benefits shareholders could expect to see in 2018” for Apple, he wrote. “We strongly believe the idea will be a ripe time for Cupertino to look ahead and also also also make a bigger bet on a brand new growth area such as streaming video.”
For all U.S. companies, Macquarie Research estimated roughly $860 billion will be repatriated that will year.
“Repatriation will be less likely to provide a boost to business investment in our view, although could lead to a stronger US dollar in 1H18,” analyst David Doyle wrote in a note to clients Friday.
Morgan Stanley also said in November that will Microsoft, Apple, General Electric, Pfizer and also also also IBM are the companies with the most “accumulated foreign earnings.”