This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Google May Follow Apple on Tax-Dodging Dividend

"In the end, we think the chances are slim that Google undertakes a massive transaction or multiple mid-size acquisitions that would consume a large portion of the $100 billion plus cash balance we expect it to reach in late 2015 or 2016. We think we will see a buyback or dividend instead," Kirjner concluded.

Of course, Google likely will figure out a way to return money to shareholders in a way that avoids the U.S. tax man.

While Apple CEO Tim Cook was dragged in front of the Senate Permanent Subcommittee on Investigations earlier this week to explain it's supposed 14% tax rate and a heavy use of Irish tax shelters to store tens of billions in profits, Google may be an even more blatant avoider of U.S. taxes.

The company was able to beat its most recent quarterly earnings forecasts because of an income tax rate that fell to the single digits, according to analysts. In the first quarter of 2013, Google reported an income tax rate of just 8%.

Regardless of whether Google follows Apple in conducting a giant return of capital to shareholders -- Apple's $11 billion in annual dividends now is the highest figure in Corporate America -- investors can expect both companies cash stockpiles, particularly those in low tax jurisdictions like Ireland, to grow.


-- Written by Antoine Gara

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $131.78 -0.20%
CBS $62.03 -0.99%
GOOG $539.78 -0.00%
IBM $171.71 -0.17%
MSFT $47.45 -0.34%

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs