Since September of 2012, Apple’s (NASDAQ:AAPL) stock has lost 36 percent of its value, showing that there has been — and continues to be — a shift in its shareholder base.
To reverse that trend, a handful of analysts say Apple needs to move some of the cash holdings it has accumulated and redistribute it to shareholders in the shape of preferred stock to attract the more value-minded investors.
Brian White of Topeka Capital Markets and David Einhorn of Greenlight Capital agree that reversing the downtrending of Apple’s stock value would involve paying out larger dividends from its cash stockpile, which is valued at $137.1 billion. This equates to $144.75 per share. About $94 billion of the aforementioned assets are held offshore.
“Since over $94 billion of the net cash is outside of the U.S., we believe David Einhorn’s perpetual stock makes sense,” White said, according to AppleInsider. “Also, Apple could tap into the debt market to increase its U.S. cash position, using the proceeds for an increased common stock dividend and an expanded stock repurchase program.”