Friday, August 9, 2013

Dividends Minus Borrowing


Click to enlarge.

It would seem that corporations are already back to borrowing a dollar for every dollar paid in dividends. I wonder what they are doing with it all.

May 1, 2013
Why Fantastically Wealthy Apple Is Borrowing Money

That means Apple can pay out a penny or more for every dollar it raises in bonds, or lose about one-third of every foreign dollar it brings back home. “It’s not hard to do the math there,” Blouin says.

Not every company is as fantastically wealthy as Apple of course.

May 21, 2013
J.C. Penney Said to Reduce Rate on $2.25 Billion Term Loan

The ratings company has a “negative” outlook on J.C. Penney, noting the retailer would “continue to experience a sizable cash flow burn in the second and third quarters of 2013.”

It burns.

Source Data:
FRB: Z.1 Release
St. Louis Fed: CPI

2 comments:

Troy said...

that Oracle guy paid $500M for Lānaʻi, well the non-government part of it (~99%).

Apple shoulda done that, and made it into an offsite Apple worker campus paradise.

Why the hell not. The $140B on their balance sheet isn't doing much else.

Stagflationary Mark said...

Troy,

They could send all their employees on a shopping spree to JC Penney too. What a perk! ;)

Or perhaps the Apple employees would prefer Eddie Bauer? Sigh.