President Trump cut corporate taxes from 355 to 21% and cut the cost to bring back money or repatriated cash from outside the US to 15%. For many large companies, this will mean the next two years profits will rise without doing anything differently than they are today. After two years, regular market forces will be of primarily concern. The strategy is how to take advantage of the extra money corporations will receive? Analysts are trying to figure out where the easiest place to park your money and receive the low hanging fruit?

In 2004, 79% of the money went into stock buybacks and 15% went into dividend increases. The numbers will change a bit but many analysts are comfortable with the 70% range of stock buybacks.

Scott Clayton of TSI Network did a chart which helps you to determine where should look:

Company          Mkt Cap   1 Yr Total  Foreign Cash   Foreign Cash   Dividend   Dividend

$bil         Return %   Holding            Per Share         Yiel    Sustainability

P&G                    231.00        8.4                15.0                    5.91                 3.1             Highest

Microsoft           680.6         40.2              132.1                 17.12                 1.9             Highest

Apple                  886.8          46.3             252.3                 49.60                 1.4             Highest

Coca-Cola            197             12.3              24.9                    5.84                 3.2             Above Avg

Cicso Systems      196.2          31.4             69.1                   13.98                2.9             Above Avg

Amgen                  133.1         15.2               38.9                  53.58                2.9           Above Avg

Pepsi                     167.9          15.2               17.5                 12.31                2.7            Above Avg

Oracle                   203.1           26.2              58.5                 14.13               1.6              Above Avg

Gilead Science     102                4.9              32.40               24.80                2.6              Above Avg

Total                                                              $640.7 Billion

Tech giants Apple, Microsoft, Cisco and Oracle have $512 billion in overseas bank accounts. What will they do with the money?

Linking to dividend paying stocks, every once in a while comes a gift or low hanging fruit, if you do not own the tech companies individually, you need to own them in a ETF fund or fund which you like and you can hold because the money is likely to come back into the US and the Boards will have to do something with it. Earning a better than average return with low risk is a great thing.

There are more questions than answers, till the next time – to raising questions.