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Why are Companies Hoarding Cash?
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FBN’s Liz MacDonald on the economic uncertainties causing many major companies to hold on to more cash.
- Duration 1:49
- Date Dec 27, 2011
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FBN’s Liz MacDonald on the economic uncertainties causing many major companies to hold on to more cash.
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-- -- well love we're talking about dividends in yields are as they are companies keeping trillions tucked away but.
Why aren't they putting it back into the economy or even shareholders' hands -- they are so many good reasons to distribute it.
Was that McDonald's here -- Marcelo Liz why don't these companies like out.
Well I that I guess economic uncertainty and Elliot talks people almost have been take a look at the ranking of who are the biggest cash quarters when it comes -- corporate cast on the bouncing really stunning figure -- and Chris.
Five trillion dollars is twice the size of -- -- double what we saw on the balance -- last year -- see here the biggest corporate cash -- Our and I found that General Electric 138 billion dollars there they own.
GE capital which is a big finance company also apple in second at 81 billion.
Cisco at forty -- billion.
And Google at 43 billion and the other thing too is we talk to read GE I you have to like take a look at this mad GE's cash -- Is bigger than -- -- -- economies eight oil producing countries.
And the Middle East -- -- SE Syria Iraq and by rain on this list here.
So the question is what will companies be dealing with this cash -- will -- -- -- my question to.
Well apple issue a dividend and -- twelve that was not had a dividend.
Since 1995.
The other issue -- is it what you see Microsoft do it did -- increase its dividend Intel -- Microsoft stands have.
Dividend Cisco IBM at ten to do buybacks whereas HP Oracle.
That had the biggest cash -- on the balance sheet.
-- deploy the cash is -- question for 2012 back to you guys.
Banks in Nacchio mark -- previous -- to say it's really hard to find a signal to when a company might raise its dividend to pay out more to shareholders so.
So it's interesting to follow this theme.