Investors should expect a dividend increase and a bigger stock buyback when Apple reports earnings next week, Citi technology analyst Jim Suva said on Monday.
He projects the tech giant will raise its dividend by a minimum of 10 percent and boost the buyback from $90 billion to $120 billion. (Tweet This)
"Apple is a cash flow machine," Suva told CNBC's "Squawk on the Street." "They have too much cash, that's a good problem. They can give more back to shareholders."
Despite a recent downgrade by Raymond James, Apple's stock has been doing well. It was up 2.4 percent to $127.80 in midday trading Monday.
The consensus on the iPhone would be beaten by about 5 million units, but in the future many more products will share the limelight, Suva said.
"We think iPhone is the focus today," he said. "They are rolling out with new products. Things like Apple phone, Apple Pay. We believe that there is more new products to come—whether it's advertising, TV broadcasting, Apple Passbook."