Apple Announces Plans to Initiate Dividend and Share Repurchase Program
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Re: Apple Announces Plans to Initiate Dividend and Share Repurchase Program
#2Initiate?
How about "re-instate dividend".
Apple previously paid a dividend : http://finance.yahoo.com/q/hp?s=AAPL&a=08&b=7&c=...
Re: Apple Announces Plans to Initiate Dividend and Share Repurchase Program
#3Not exactly surprising or bold, i.e. it is the easiest way to deal with the surplus of cash. However, it could be seen as an indicator that Apple's management cannot figure out how to use all that cash to continue the company's growth. In that sense, the announcement of a dividend is a bellwether moment.
Re: Apple Announces Plans to Initiate Dividend and Share Repurchase Program
#4The expectation of a larger dividend is what has been driving the share price up recently (which is why it will probably fall today).
I don't know where that expectation came from. First Apple had the problem of repatriating international funds, so this was never going to be a $30, $50 or $100 (some crazy estimate) dividend.
Second all precedent from similar companies issuing a first dividend (well not first for Apple, but first for the 'new' Apple) such as Microsoft and Cisco is 1-2%.
I don't think the buyback will be very effective, not against the bigger dividend expectation.
1.8% is about par. I am surprised they didn't split the stock. Question now is how far the stock will fall today before picking back up again later on as yield-focused funds buy into the new action.
Re: Apple Announces Plans to Initiate Dividend and Share Repurchase Program
#5Not exactly surprising or bold, i.e. it is the easiest way to deal with the surplus of cash. However, it could be seen as an indicator that Apple's management cannot figure out how to use all that cash to continue the company's growth. In that sense, the announcement of a dividend is a bellwether moment.
Or that is dosent need all of 100 billion dollars in cash to continue its growth.. If you look at the details, they will use 45 bil over 3 years, so in 2015 I believe they'll still have about 100 billion in cash.
Re: Apple Announces Plans to Initiate Dividend and Share Repurchase Program
#6Not exactly surprising or bold, i.e. it is the easiest way to deal with the surplus of cash. However, it could be seen as an indicator that Apple's management cannot figure out how to use all that cash to continue the company's growth. In that sense, the announcement of a dividend is a bellwether moment.
A big acquisition could just end up being a distraction from their core businesses. There is probably only so much you can spend on improving the current supply chain, $100 billion+ is a crazy large amount. What if they feel they can continue growth without spending every last cent?
Re: Apple Announces Plans to Initiate Dividend and Share Repurchase Program
#7why they are announcing this 30 minutes before the actual conference call?
Re: Apple Announces Plans to Initiate Dividend and Share Repurchase Program
#8They make more money every quarter than they plan to pay out with dividends or stock repurchases - so their cash hoard will continue to grow...just more slowly now.
Re: Apple Announces Plans to Initiate Dividend and Share Repurchase Program
#9Not exactly surprising or bold, i.e. it is the easiest way to deal with the surplus of cash. However, it could be seen as an indicator that Apple's management cannot figure out how to use all that cash to continue the company's growth. In that sense, the announcement of a dividend is a bellwether moment.
A more positive way to see this is that Apple has become so profitable that they can continue funneling huge amounts of cash into everything that they want, and still have lots left over.
But I agree with your sentiment. It's a bit sad that Apple seems to have maxed out their ability to use money on themselves.
Re: Apple Announces Plans to Initiate Dividend and Share Repurchase Program
#10The expectation of a larger dividend is what has been driving the share price up recently (which is why it will probably fall today). I don't know where that expectation came from. First Apple had the problem of repatriating international funds, so this was never going to be a $30, $50 or $100 (some crazy estimate) dividend. Second all precedent from similar companies issuing a first dividend (well not first for Appl…
It's actually trading +1.67% (pre-market).