Are dividend hopes driving Apple’s shares higher? (with video)

“Apple’s shares managed to defy the sharp market downturn on Friday, logging a small advance by midday and drawing nearer to the $500 milestone,” MarketWatch reports.

“The shares have now risen about 18% since the company reported blow-out earnings results on Jan. 24. Much of the gains have come from higher estimates for Apple’s two key products – the iPhone and iPad,” MarketWatch reports. “The iPhone alone now accounts for more than half the company’s total revenue base, and the device still has highly limited distribution in China, a major global market. With the iPhone 5 expected in late-summer, and a new iPad predicted by the March-April timeframe, analysts see a strong year ahead for the company.”

MarketWatch reports, “However, another factor that could be adding to investor enthusiasm is the possibility that the company may reverse its long-standing avoidance of paying a dividend. Apple’s cash hoard is now close to $100 billion, and more investors and analysts are looking to the company to consider returning at least some of that to shareholders.”

Read more in the full article here.

17 Comments

  1. Sorry, but this is blatantly stupid. Apple never gave even slightest hint that it is going to pay dividends in the near future. So, of course, stock price growth has nothing to do with this.

    Apple shares simply rebound from underevaluation comparing to, say, Google’s shares (compare how much money this company earns and how much it costs with Apple’s earnings and cost).

  2. In memory of Steve Jobs, you don’t go ‘thermonuclear’ on those who have stolen their ideas and start the battle by giving away your arsenal. That would be stupid and Apple definitly is NOT stupid.

    1. The value of Apple protecting their IP from theft is far greater, really many multiples greater than the few meager extra investment dollars they would pull in by throwing away the cash pile in the way of dividends.

      Really getting sick of hearing so-called “experts” talking about dividends and buy backs as if it’s a good use of investor money. Wall Street investment speculators presided over (more like caused) the worst financial collapse of my lifetime, and they want to give Apple advice?

  3. Apple doesn’t need to split the stock. They don’t need to raise cash. Remember over 60% of that cash is held internationally. If anything, I hope Apple does a buy back. With the cash on hand, they could buy nearly 25% of the company and I hope they do. Although Steve Jobs built a great board of directors, it is time that I worry about. Nothing is more worrisome than pleasing greedy board members and shareholders. Steve Jobs had that ability to shift priorities from bleeding the company for profit to building a great product that people would want. Big difference. Don’t let the guy with the spreadsheet dictate where costs should be cut to save an extra dime. Those guys have no clue what it is like on the ground. Steve Jobs did. By focusing on a building an innovative and evolving product, people over time realized that they want that, because of the extra care and extra cost that went into producing such a solution.

    You can play the short game or you can play the long game. Apple’s long game is winning. Look as a result they are the biggest in the world. Who knew that doing something great would work as well as it does. Maybe this is something Mitt Romney should take a lesson from, instead of destroying companies, riddle them with debt and making millions that way. Thank GOD Mitt Romney didn’t buy Apple in the late 1990s. If he did the only thing I could get with an Apple logo on it would be a T-Shirt.

  4. A small dividend is not going to eat away their cash hoard – they’ll be adding far more than the dividend will pay. From what Oppenheimer said it sounds very possible we will see a divided in the near future.

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