“Wall Street purists would say it is,” Fortt reports. “The argument goes something like this: Cash isn’t for show. It’s for investors. Companies have an obligation to either use it for growth drivers like acquisitions and equipment, or give it back to the shareholders.”
“Several investors quizzed Jobs about Apple’s ‘war chest’ at last month’s shareholder meeting, forcing him to defend his Scrooge-like ways,” Fortt reports. “Their concern is understandable. But I still say Steve should just ignore the noise and continue doing his thing with that pile of money.”
Why?
• Because it’s working
• Security
• Competition
• Access
• Real Estate
Fortt writes, “Without dividends or buybacks [AAPL] stock is worth about 10 times what it was worth a decade ago. That kind of performance earns you the benefit of the doubt.”
Full article here.
Steve (and Co.) is making money for the shareholders.
That’s some problem.
Steve, use that money to make my investment worth even more, please!
Apple is a growth stock. No dividends necessary.
A Pessimist… no… A Realist… yes
Apple is a growth stock. No dividends necessary PROVIDED you sell higher then you purchased and your investment money in Apple grew!
I have other stocks for their dividend and have APPL for their cash component. Keep it up and growing.
Funny how Wall $treet pundits can demand this of Steve Jobs. Yet, you never hear this question posed to Warren Buffett, who famously eschews dividends as well. To Buffett, not paying a dividend means the money can be reinvested or put to use within a company. Historically speaking, this point of view has been very good for shareholders of Berkshire Hathaway. And when you factor in the cash portion of Apple’s per share value, the stock is actually a bargain. But Wall $treet would not be what it is if not for sheer greed.
Funny how know-nothings who have never run a company think they know more than the most successful entrepreneurs and managers. But I doubt their vision and leadership skills. But that never stopped some two-bit idiot with a blog. Sadly, their inane comments get published and quoted in articles as if they knew something. They don’t.
I’ll put my money with Messrs. Jobs and Cook, thank you very much.
Apple had its ‘rainy day’ from 1996 to 1998. Never again!
Keep building that war chest, Apple.
Hey Man,
I jus wans some leetle dividends to buy me some tortillas.
Fortt writes, “Without dividends or buybacks [AAPL] stock is worth about 10 times what it was worth a decade ago. That kind of performance earns you the benefit of the doubt.”
Their is no doubt. No dividends and no buyback!
hint, dividends are taxed as income. stock appreciation as capital gains. those asking for dividends obviously don’t own any stock.
“Yet, you never hear this question posed to Warren Buffett, who famously eschews dividends as well.”
Yes but Warren is also known to spend his money buying additional companies. And big ones at that. He doesn’t sit around with $40 billion in the bank.
If you do not like their policy, sell Apple and take your money elsewhere.
The same Wall Street crooks/morons still don’t get it. Apple HAS been using it’s cash- just in ways that piss off the ‘Professional Investor’ crowd- you know the ones who missed the Apple stock run up until it was obvious and missed the gathering storm in Credit Default Swaps and Collateralized Debt Obligations. The same peeps awarding themselves huge bonuses after fUBARing the economy.
Apple has used some to lock in supplies of flash memory to stabilize their price and other things over the years. They make small acquisitions like Transitive and PA Semi quietly and don’t overpay or line the pockets of Wall Street Banks because they don’t have to borrow.
As a share holder and customer- I think Apple is doing just fine and Wall Street can shove it where the sun doesn’t shine.
I’ll say it again:
Spend that x-tra cash for R&D;. But a Quad split would be great.
It costs Apple nothing to split, and that would be worth more in the end.
A lot of that cash is to scare IP infringers
Back in the last recession you could have bought 100 shares of Apple for less than $1,000 (US). It went into the 90’s and split 2 for 1. Now your 200 shares are worth well over $200. At today’s close your less than $1,000 investment is worth $44,448.00
No other stock over that time frame even comes close to that performance.
Apple is saving up to buy Microsoft.
It is money in the bank that lets you build as many iPads as you want for the first day of release while also bringing a BILLION DOLLAR SERVER FARM on line at the same time!
However, I would like to have a special iPhone or iPad that is available only to AAPL stock holders. Kind of like investor party favors! That way, I know who is on the team when I see them in the real world. Maybe a special iPad with every 100 or 500 shares you buy!