“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.
False hope, stock split yes, stock buy backs, or dividends no.
Why yes on the stock split?
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).
Short answer: no.
Long answer: noooooooooooooooooooooooo.
Explanation: Hell no.
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.
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?
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.
♬ Your love is lifting me higher ♪
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.
A yearly dividend that would cover buying or upgrading more Apple goodies would be nice. That would be having our cake and eating it too!
I hope Apple does a buy back. The company needs to shake off the useful idiots that are the stockholders and go private.
Abodlutley no buy back.
Keep focused on fighting google. After the war is won. Think about a split.
Apple should not diminish its cash hoard unnessarily. At the same time Apple can also give out yearly or quarterly dividends to its shareholders without destroying its cash hoard. This suggestion might sound a bit of a paradox to many who do not think out of the box. How can Apple achieve such contradictory aims?
Simple, with such a big cash hoard Apple can do a lot of things that other companies could not dream of doing. Buy a bank and then manage its own investment. With the profits earned out of this investment Apple could distribute them as dividends to its shareholders. There you have it: Apple could have its cake and eat it too. Silent the pesky agitations of Wall Street and at the same time invade its banking turf.
A bank is always going to be a business that is relevant in any age. Businesses need loans to expand. A bank that is well managed and avoid stupid mistakes and risks that have nothing to do with banking ought to be an ongoing business. At normal times entering into the banking business is prohibitive and difficult. But this is not normal times: Many banks are in trouble because of excessive speculation and inane decision-making. So this is a great opportunity for Apple to enter into a new business cheaply when competitors are at their weakest. With $5–$10 billion Apple could buy a decent bank. Avoid the big banks with liquidity and encumbrances problems. Apple could disrupt another business with its customary innovative flair.
How greedy do you have to be, when 18% in one month is NOT enough and you want a DIVIDEND on top of that???
Exactly which part of AAPL’s warp-speed growth is not rapid enough for these investors that they now want a dividend too?
If you want to earn 1% dividend on your investment, put your money into CDs. If you really, really, really need cash and have AAPL, sell some shares, rather than persistently asking for dividends.
I, too, am getting extremely pissed at this groundhogs day repeated call for stupid wastes of Apple’s cash dividends and buy backs.
Dividends are a dead idea, period. Buy backs are only a good idea if Apple feels they are in the company’s strategic interests.
Neither is a good idea for investors, unless you consider short term profit taking leeches to be “investors”. I sure don’t.
I see Apple as a long term investment and see them having long term plans and ideas where their cash position will give them leverage. Dividends are a short term play and I do not think in the long run pay off well for investors.
+1