“Editor’s Note: Apple is hosting its annual shareholder meeting today in Cupertino, Ca. and the big question looming over the event is if CEO Tim Cook will discuss what the company’s plans are for it’s nearly $140 billion cash pile.
Historically, the two-hour meeting is pretty straightforward, but this year Apple may feel pressure to shed more light on its cash strategy because of activist shareholder David Einhorn’s public shaming of Apple for not distributing more cash to shareholders.
(Read More: Court Rules in Favor of Einhorn in Apple Dispute )
Einhorn, who is president of the hedge fund Greenlight Capital, recently sued Apple over a proposal in its proxy and was successful in blocking shareholders from voting on the measure today. Einhorn’s aim is to get Apple to unlock more value to investors.
Chip Cobb, senior vice president at BMT Asset Management, said that while he is unsure if Apple will disclose any increase in dividend today, he does think that Einhorn’s activism has pressured Apple to start giving some answers.
“Einhorn, he’s raised the bar a little bit on putting the pressure on Apple. I wouldn’t expect a lot at this meeting today, but it’s certainly a possibility that you’re going to see the dividend increase beyond that, roughly 2.4 percent. It absolutely has become a value play,” Cobb said.
