“Apple is leaning toward additional dividends or a share buyback program as part of its effort to return more cash to investors, according to sources,” Gina Chon reports for Quartz. “The US tech company could announce the move this spring, potentially in conjunction with a product announcement, the sources said.”
“The announcement of the new cash distribution could possibly come alongside Apple’s unveiling of upgrades to the iPhone and/or iPad mini, which are rumored to be in the works,” Chon reports. “When announced, it is likely to give Apple’s shares a boost.”
Chon reports, “Whoever gets credit for Apple’s plan to return more cash, the move shows Apple is no longer immune to shareholder pressure.”
Read more in the full article here.
Maybe this will start the stock on an upward trend.
Oh, silly me. I forgot how the market responds to positive news for AAPL. The stock will plummet.
There is NO stockholder pressure. There is however, plenty of Wallstreet pressure. Firstly, to suck and leach off of as much of the honey sack that Apple is carrying. Secondly, just to show Apple who is boss. Hopefully, Apple will not buckle and carry on the road paved by SJ.
mmmmmmmm……. who is doing this and why? How? What companies? Names? How are they benefiting? Examples? Examples with facts? Just wondering.
The source she can’t cite is the stupid analyst article that was on MDN yesterday.
GM, you should be asking that question of Gina Chon and other “reporters” who have distributed this story and elaborated upon it until it is often reported in the guise of inevitable fact in great detail.
As a start at answering your question to Paul, I submit David Einhorn and Greenlight Capital.
Could…Same sources say they know Apple’s next product and it’s a failure so why bother making it at all…Apple needs innovation.
Sources also say they have absolutely no information to back up their nonsense. Sources have to write a story every day or they don’t get paid. Each source writes this same story at least once a week.
What a revelation! Who’d a thunk a div increase or buy back was on the horizon?
Blaming Apple’s moves on shareholder pressure ignores the fact that Tim Cook initiated matching employee charitable contributions, stock buyback and a stock dividend. I think Apple has a different North Star than Wall Street greed. Leave it to those Wall Street assholes to take credit, though.
Although I’ll take the dividend, I’d much rather Apple use that money for a few major acquisitions. I’d like to see Apple take on Netflix for streaming movies and TV shows and definitely try a little harder to improve AppleTV with the ability to add apps for games. Roku is really making AppleTV look completely incompetent. Why is Apple just wasting that cash when there are so many things that can be done with it to bring in more revenue?
“…potentially in conjunction with a product announcement…”
Blather on without the slightest bit of understanding Apple motives. Product introductions are crafted to generate lots of free press, on the order of US$100M. The only “conjunction” Apple would contemplate would be if they wanted the press distracted from the product announcement.
And don’t you love the transmogrification of certainty? From “possibly” to “when that happens” — it’s despicable what these people pass off as reporting.
Yeah, all the ‘sources’ say that except the one that matters: Apple.
Careful. The source of the rumor is probably that stock manipulator, Doug Kass.
I can’t say I have any real faith in this report, especially since it says Apple started paying a dividend “this year.” It was last year.
Isn’t there already a buy back scheduled?
The Manipulator: Why report the news when you can projects, Apple now walks amongst mortals, the way that the Greek gods once did. Just what is the value of an immortal geek god these days? Only the stock drop knows for sure.
A Greek god does not earn over 10% per year on investment, nor did they make more money last quarter than any company in history, nor pay a dividend of 2.5%, nor have no debt.
This is what companies do when they run out of innovation to bring to market. WHY would Cook even consider such a stupid move? Apple does not need Wall Street’s approval nor their money. Keep producing the best quality hardware and software and ignore the greedy traders!!!
So stock price is based on anticipated growth (or even acceleration of that growth). For example, why would you buy stock if you think it will stay the same. So, at what point a company “big enough”?