Greenlight Company Presentation
Compare this to Raising the Dividend
5 iPrefs per common share
o $236 billion iPrefs issued
o 4% dividend: $9.5 billion
o Total value: $600/share
$150 / Share Unlocked
Raising Common Dividend by $9.5 billion
o Current $10 billion in dividends:
$10.60 per share dividend
Greenlight Capital, Inc.
o $19.5 billion in dividends:
$20.60 per share dividend
o $20.60 at 4% yield: $515 stock price
$65 / Share Unlocked
Dollar for Dollar, iPrefs Unlock Much More Value than Common Dividends
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Let's compare iPrefs to the conventional idea of nearly doubling the dividend. We can see that for
the same incremental distributions, iPrefs will unlock much more total value. If Apple distributed 5
iPrefs per common share, it would cost $9.5 billion in annual dividends. We just showed why we
think that would unlock $150 per share in value.
Compare that to Apple adding the same $9.5 billion to the annual common dividend, which would
bring the dividend to $20.60 per share. As we discussed, dividend yields on common stock are just
one factor that common shareholders look to. We believe that for the dividend to be a primary value
driver for Apple's common stock, it would have to yield 4%. On that basis, Apple would trade at $515
per share, or about $85 less than the iPref solution. In order for Apple to reach the same $600 value,
the increased dividend would have to drive the shares to a 3.4% yield.
Incidentally, under the iPref program we are assuming that the common stock continues to receive a
$10.60 dividend or almost a 3% yield based on the $350 value.
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