People invest in stocks to get both appreciation in value and a share of the profits. It should be made illegal for companies to hold profits and not distributed anything. Rather, maybe they should operate on a plain level field and companies should be required to destribute a minimum percentage of the profits to their shareholders.
Apple to pay dividend to shareholders: Worst decision in years
- Thread starter peilthetraveler
- Start date
There are no viable alternatives in globalization
rmorse
Sponsor
How about a bank. They could offer a card processing, store point of sale product for businesses.People could pay with their smart phone, or a card. The point of sale system they use in their stores can be sold with software and hardware to business. Then over time, they can offer other banking services.
iBank.....
iBank.....
So what? Investment return is determined by share price appreciation and cash payouts, not by market cap. If you have 500 billion stock, or 400 billion stock and 100 billion cash, you have exactly the same amount.
Also, investors can use the cash much better than Apple just sticking it on deposit at pathetically low interest rates.
Historically, diversifying out of core competence, or doing random acquisitions, destroys shareholder value. Jobs himself had a principle not to split focus on too many things, he said to keep only 5 or 6 main business lines and not stray further, to avoid sliding into mediocrity.
Returning capital is the obvious way to do that. Their only mistake was not doing so 1 or 2 years ago with share purchases at the bargain prices that prevailed then. Now the stock is not as cheap so a dividend makes more sense.
Quarterly dividend of $2.65 per share, annually $10.60 for a current yield of 1.75%. Been waiting almost a year for this div. The dividend policy and buyback is pretty sweet. $10 billion buyback $2.65 per share every quarter, and that's what a mature company will do when they have no better alternative than to return a mountain of cash back to the owners.
They shouldn't ever look at any acquisitions, and stick to this plan. Tim Cook's got the right idea here.
They shouldn't ever look at any acquisitions, and stick to this plan. Tim Cook's got the right idea here.
As for the (proposed) 45% dividend tax, what does it matter if the shares are in a tax advantaged account?
Yup, odumbo & the dem's are laughing all the way to the bank about this deal....he is about to a** ram the dividend cap rate to 45% and take all your $$!
http://www.elitetrader.com/vb/showthread.php?s=&threadid=237247
http://www.elitetrader.com/vb/showthread.php?s=&threadid=237247
If they did that they would cause a run on all banks. I could imagine their use of technology within the banks, with little retina scanners voiding the need for paper withdrawal slips. a few clicks and touches with a finger , a look at the scanner and wala. all done in a nice overly white environment. i dont know, I think they would take the place of goldman sachs but it is a peoples corporation so who knows how bad or better it might be to our current situation.