Steve Jobs’ death increases pleas for Apple to pay dividend, buyback stock

“At a meeting with Apple Inc. finance chief Peter Oppenheimer this year, investor Kishore Rao asked the company to tap its billions in cash to pay a dividend,” Ari Levy and Adam Satariano report for Bloomberg.

“Oppenheimer had heard the request before and explained that Apple is keeping its powder dry for ‘strategic opportunities,’ without elaborating on what those could be, Rao said,” Levy and Satariano report. “The stock had almost doubled in the year before that meeting, and Oppenheimer argued Apple has been a good steward of its cash and investments, currently worth $76.2 billion.”

“The drumbeat to open that treasure chest may now grow louder following the Oct. 5 death of Steve Jobs, Apple’s former chief executive officer. Jobs, who rescued Apple from near- bankruptcy and turned it into the most valuable technology company, engendered faith in his insistence on hoarding cash. In his absence, as the stockpile grows, Oppenheimer faces renewed calls to fund a dividend or stock buyback,” Levy and Satariano report. ‘They don’t need all that cash,’ said Keith Goddard, CEO of Tulsa, Oklahoma-based Capital Advisors Inc., whose largest holding is Apple. ‘It won’t change their growth rate to pay a dividend.'”

Read more in the full article here.

MacDailyNews Take: Bleat, bleat, bleat go the sheep.

Related articles:
Apple’s war chest: Rethinking the theory that cash is a burden – July 8, 2011
Some shareholders press for Apple dividend, buybacks – January 18, 2011
Toni Sacconaghi keeps whining for Apple to execute stock buyback or pay dividend – December 8, 2010

35 Comments

    1. You are right on the money! It’s not enough for these greedy Wall Street “investors” to have earned an unimaginable factor in AAPL over their original investment, but they want to paid for the privilege of earning money on top of it. Thank God Apple doesn’t capitulate to the whims of the whiny marketplace… And thank God Uncle Sam can’t make them do it (yet), because you know he would if he could.

      1. These are short-term Wall Street type of investors of Apple’s stock. They went in and out at their whims and fancy and speculate for their own advantage. To accommodate their wishes would be very unfair to long-term investors. Apple is right to ignore such opportunists to protect the interests of long-term investors who believe in Apple.

      2. Horse hockey. A stock buyback is always an utter waste of cash that only serves to enrich the Wall Street speculator class who have managed to drive our country into the ground in the past few years.

        A dividend on the other hand immensely helps smaller, long-term investors, people like most of the posters here who own APPL, by allowing them to realize continual earnings on their investment over the long haul and not just on the date they sell their stock.

        If I had been lucky enough to buy 100 shares in 1998 at $2 a pop, on paper my $200 would now be worth <$40k, which sound great, but in that period of time all I had done was accumulate paper wealth, paper wealth that could be back at $2/share by the time I retire. OTOH if Apple had paid dividends during that time, my initial investment could have been repaid over and over earning real wealth regardless of what the actual share price is. Now those dividends could be used to buy more APPL, other stock, bonds or other savings instruments, or just be spent on frivolous stuff, but whatever I use them for the dividends ensure that investors, as opposed to speculators, actually earn money.

        Now, do I think Apple just pay all of its cash out as a dividend? No. But if Apple paid out regular quarterly dividends at the same rate as, say, AT&T which pays 43¢ per share per quarter, times 927m outstanding shares meaning that Apple would pay a dividend to its shareholders (you know the people who legally actually own the company) of $450m per quarter. That's not even a drop in the bucket compared to Apple's earnings.

  1. It’s amazing to me that these business types can praise Apple’s business acumen and yet turn around and second guess the policies that have gotten the company to where it is today. Do they really think these things are completely uncoupled?

  2. You would think that any investor with common sense in his head, would look at Apple’s success and realize their current formula works very well.

    Why should they change it?

  3. ….

    Honestly people. I know you want to see a return on your investment. But with the country in a financial mess, please understand Apple has a very large cushion. Until things settle down financially we won’t see anything… if at all.

    If you area dissatisfied about the dividends please take your money and invest in something with more returns.

    But I am perfectly fine investing in something big and stable with out getting a ton back. Because when the s**t hits the fan, Apple will be fine way longer than anyone else.

    sudo killall rant

  4. it’s going to take a lot of cash to get the mothership beyond Earth’s atmosphere, let alone to the .next nearest habitable planet. These people are simply not thinking clearly.

  5. Kieth Goddard and all the Other brokers out there need to stop giving their overvalued 2 cents. Apple didn’t achieve what it has listeningto the cries for the blood of the golden goose. If they can do better they should start their own company.

    1. I find this in poor taste given that Apple has been one of the few American corporations adding people to their payroll since the downturn began. Not only that, but your moniker makes it sound as though you’re happy about the current state of affairs, whether it be in regard to jobs, or to Jobs.

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