Back to top

Real Time Insight

Large companies have been hoarding cash since the start of the financial crisis. Per FT & Deloitte, 32% of the largest non-financial companies currently own about 82% of the $2.8 trillion cash pile.

And five companies account for about 14% of the entire cash stash.

Apple $146.8
Microsoft $80.7
Google $56.5
Verizon $54.1
Samsung $49.0
 
However most of the cash owned by tech giants is held overseas. Tax regulations make repatriation of this cash unattractive. Of late, these companies have been facing growing pressure from activist investors to return more cash via dividends and buybacks. In fact, Apple paid out $33 billion to shareholders last year and plans to return $100 billion by the end of 2015.

Record low interest rates have also encouraged many companies to borrow more but they have not been putting that cash to work.

What do you think is the best use of the corporate cash hoard in 2014:

A: Spend more on dividends and buybacks
B: Increase capital spending
C: Improve balance sheets by reducing leverage
D: Do nothing (or just wait for a tax holiday)

Zacks Releases Their 7 Best Stocks for August, 2014

These 7 were hand-picked from the list of 220 Zacks Rank #1 Strong Buys with earnings estimate revisions that are sweeping upward. Their stock prices are expected to rise sooner than the others.

Today, this Special Report is available to new Zacks.com visitors free of charge.

Close This Panel X

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%