“Wall Street cheered Apple’s robust quarterly report, but now investors are waiting to see what the tech giant does with its record amount of cash,” JeeYeon Park reports for CNBC.
“Apple generated $14 billion in operating cash flow in the March quarter, making the company’s total cash position of around $110 billion,” Park reports. “‘The best thing they can do is [make] steady increases in the dividend,’ said Larry Haverty, portfolio manager at Gabelli Multimedia Trust on CNBC’s Closing Bell. ‘There’s plenty of room for improvement in the payout…Steady increases maybe once every six months and push the stock up between 2.5 and 4 percent yield and we might even get more than $750 [a share].'”
Park reports, “Last month, Apple announced it will pay a quarterly dividend of $2.65 per share, starting in the quarter beginning July 1, and added it will begin a $10 billion share buyback program. Other analysts seemed to agree that Apple should increase its dividend payout. ‘We continue to believe that the dividend is conservative and we see plenty of opportunity for growth in dividends as well as buybacks,’ wrote BMO Capital Markets in a research note.”
Read more in the full article here.
MacDailyNews Take: It begins.
[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]
The floodgates have been opened, beware Tsunami.
Saw it earlier too…. Good GRIEF!
There should have been no dividend agreement in the first place. The vultures are not shareholders. Shareholders “hold” stock as an investment and deserve dividends. Generally I would say the real “holders” don’t care about the dividend but care only about growth and appreciation of the stock.
Agreed. There should have been none. And now the cackling starts for an increase (by people who either have no financial stake on no ethics). Go back and listen to all you analysts who said the bubble was bursting. Too bad it didn’t burst on them.
what? Real holders would like to hold their stock. A dividend gives them a nice income stream while they wait
Exactly backwards. But you go ahead and rationalize.
I have held my stock for close to 20 years.. I want a dividend.
Wrong.
The ultimate duty of any joint-stock corporation is to pay dividends to its shareholders. Apple should have been doing this for the last five years at least.
-jcr
Maybe we can institute an IQ test for AAPL share ownership.
Stupid. Apple said that 71% of that fresh cash is overseas. To pay for a higher dividend, that cash would have to be brought back to the US and Apple would have to pay 35% income tax on it!
Not true.Apple could borrow against their foreign cash for a very low cost.
That’s even nuttier! Borrow to give money away?
They aren’t giving anything away.The shareholders own the company. They can invest the money overseas for income and that would defray the cost of borrowing over here.
yeah, not really.
The investors want MORE money? Greedy bastards!
People are sick. Greed and hostilitie rules the day makes our society doomed.
Y
boy, that didn’t take long.
Gimme, gimme Apple Tree
I want money all for free
Sitting on my Analcysts ass
Spending someone else’s cash
Money for free? As a long term stockholder I’ve contributed 6 figures of capital for many years now. I own a portion of that $110B and every other asset the company has. I’d like some of my money if they don’t need it for something important.
Just playing Zeke
But you don’t understand. John Edwards needs the dividends to pay for his asshooker while he lets his wife die of cancer. And to think of all those dumbass democrats who swallowed all that hook, line and sinker and were ready to vote that vulture president. We will clear the government of dems starting in November with Chimpy Obama (remember, you dems liked to call Bush that, but the name fits anatomically better with the current chimp).
STFU
Apple is doing wonderful… but the stock market is not what Apple is all about… hope to see those Mind blowing advancements as promised by Christmas – ok Cook.
Brokers can’t admit they’re wrong orherwise no one would use them. So instead they come up with other ways to get money out of apple.
It comes from CNBC, enough said.
Apple can just say: “Umm, no. Unhappy? Sell your shares. Good day.”
Apple executives are major share holders.You think they don’t want dividends? They will increase the dividend payout and/or buybacks by this time next year.Its all but a certainty.