Five Tech Stocks, $400 Billion Cash
The cash accumulation among five giant tech stocks – Apple (AAPL), Google (GOOG), Microsoft (MSFT), Oracle (ORCL) and Cisco (CSCO) – continues, with their combined positions now totaling about $400 billion.
Apple keeps most of its cash in investments classified as long-term, some $118 billion, but here’s the cash and short-term investments for the five:
All but Google in this group are struggling to produce revenue growth, but the tremendous cash flow from their businesses fund increasing dividends and stock buybacks.
All but Cisco would seem to have plenty of capacity for meaningful dividend increases, looking at payout ratio. Google, with no dividend, could initiate a fabulous one.
Valuation wise, the cash impact is significant. A straightforward PE ratio, based on trailing results, for the five:
And now, PE ratio less cash; notice Cisco.
Jeff Bailey, The Editor of YCharts, is a former reporter, editor and columnist at the Wall Street Journal and New York Times. He can be reached at email@example.com. Read the RIABiz profile of YCharts. You can also request a demonstration of YCharts Platinum.