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Chatter about Apple (AAPL -0.6%) paying out a dividend with part of its $97.6B in cash picks up...

  • Thursday, January 26, 2012, 2:23 PM ET
    Chatter about Apple (AAPL -0.6%) paying out a dividend with part of its $97.6B in cash picks up again as analysts question what's the most productive use of a piggy bank that is greater than the GDP of a majority of the nations on the planet. Count Ticonderoga's Brian White in the camp of people who believe that a dividend payout would increase AAPL's value by attracting dividend-only funds and investors. "It’s going to be a gusher when they tap into that thing...It’s like tapping into an oil field out in Texas."
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This news story has 15 comments:

  •  
    Why would they do something as stupid as that? It's a growing tech company. They could buy Corning (who makes the Gorilla Glass screen for iDevices) for $20b.
    26 Jan 2012, 02:28 PM Reply Like
  •  
    They are going to buy Facebooks IPO out...all of it...total..jajaja
    26 Jan 2012, 02:41 PM Reply Like
  •  
    The day they pay a dividend is the day I sell the stock. Potash doubled their dividend today after a disappointing earnings report and because it's a broken momentum stock. Apple can keep their 1-2% dividend, imo.
    26 Jan 2012, 03:18 PM Reply Like
  •  
    A whole new class of investor is added by paying a dividend, they will be happy to buy your shares on the way up. If APPL paying a dividend means it's a broken momentum stock, then I am willing to accept a broken 20%/year price appreciation stock - plus the dividend!
    26 Jan 2012, 03:46 PM Reply Like
  •  
    One of the things that fascinate me about Apple is "Think Different"
    26 Jan 2012, 03:58 PM Reply Like
  •  
    you want share price growth? split. put the stock in the hands of more people at a lower price. it would be the apple thing to do.

    @ 50 per share, just eagerness to own a piece drives it back to 100 in a few months, i'd think. at fairly negligible cost. give the foxcon guys a share or two- a bonus. smote all the critics with one mighty smote!
    26 Jan 2012, 04:11 PM Reply Like
  •  
    Really??? That's a H O R R I B L E idea.

    You would increase transients, who really don't belong in AAPL and unnecessary added day trader volatility. No Thanks!

    What Apple has been doing is perfect. See BRK.A

    Most of us (not you) are ok with a relatively calm 20+% annual increase in market cap appreciation.
    26 Jan 2012, 04:25 PM Reply Like
  •  
    You don't get more pizza by slicing it into smaller pieces.
    26 Jan 2012, 08:57 PM Reply Like
  •  
    That's an old Yogi Berra joke. He walks into a pizza parlor. The guy behind the counter asks him if he wants the pizza sliced into 6 or 8 pieces. Yogi says that he's not really hungry, so just slice it into 6.
    26 Jan 2012, 09:20 PM Reply Like
  •  
    simple- you sound like the guys who fired jobsie in the first place.

    it's not about elites. it's about getting apple stuff into people's hands.

    splitting worked well for jnj and nike.
    27 Jan 2012, 02:28 AM Reply Like
  •  
    All I ask is that you please continue "investing" so I can continue making money off of you.

    :-)
    27 Jan 2012, 11:05 AM Reply Like
  •  
    The current price does not reflect fair value here (its not even close). Really surprised we have not seen more movement (in price) given the incredible quarter. When you compare the p/e on AMZN against AAPL it is mind boggling. What am i missing? Also, if AAPL could get this flash issue adddressed i think we would all be thrilled.
    26 Jan 2012, 06:39 PM Reply Like
  •  
    I was expecting a bigger sell-off. I'm pleased that Apple looks to be consolidating in the 440s for now. There was a massive infusion of investment capital right at the announcement, it takes a ton of money to drive a company this size up $50 in a few minutes. Pretty much everyone I know who owns Apple was planning on selling a good chunk of their shares on this earnings announcement and entering back in later. Be content where it is for now. It could've retraced right back down another 20 bucks or so as everyone tried to cash out. The stock price is really just a balancing act between buyers and sellers. Can you blame people for taking profits? Once the sellers are exhausted, look for the stock to begin to creep up in a week or 2. That's how it tends to go.
    26 Jan 2012, 09:25 PM Reply Like
  •  
    Transients? Having been born in a logging camp and lived in a trailier park, I'd better take my 2K of APPl and shufffle out of here.
    26 Jan 2012, 08:08 PM Reply Like
  •  
    Apple has a dilemma that pretty much everyone can only dream about. When's the last time you heard someone exclaim: 'you know, I just have too much cash'? Having all of that cash gives Apple tremendous leverage and stored energy. They could buy out their entire supply chain. They could get a huge stake in a company like Facebook. Paying out a dividend could attract a lot of new money from value funds. There are arguments to be made on both sides. At some point Apple's going have to do SOMETHING. If they stand pat, in 5 years they would have in excess of $300 Billion.
    26 Jan 2012, 09:37 PM Reply Like
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