Apple (AAPL) executives said late Tuesday that they are considering alternatives for the company’s $97.6 billion in cash and investments, but the Wall Street Journal reported that paying a dividend appears to be the most likely.
Other possibilities for Apple’s cash hoard include making acquisitions and funding other projects, reported the Journal.
An Apple dividend makes a lot of sense, the Journal reported. It would bring in a whole new class of investor because many mutual funds only purchase dividend-paying stocks.
Getting dividend-focused mutual funds to buy Apple shares could provide more stability for the stock, according to the Journal.
AAPL is a Cabot Benjamin Graham Value Letter stock.