I just read Apple is planning a $30/share special dividend. That would explain the pop in the last hour and the drop in the stock over the last year. They're going to give away the cash......Steve Jobs never wanted to pay any dividends let alone a special dividend which gives away a major chunk of the company's assets.
ONE TIME DIVIDEND IS JUST STUPID What you want to do is increase the SHARE VALUE
best way is a SHARE BUYBACK THAT REDUCES THE OUTSTANDING SHARES BY 10 %
BUY NETFLEX AND OTHER CONTENT THESE ARE LONG TERM POSITIVES
Agreed. Get a loan and buy back 100 billion in shares. Then, toward the end of the year, buy Disney for content. The share price would rise dramatically, but it would rise out of long term merit, and not because you needlessly gave away 30 billion dollars.
A $30 special dividend would destroy the stock. It's a stupid idea and a white flag. They could benefit shareholders in a far better way by buying stock, decreasing the float, raising the current dividend and still saving tons of money with share appreciation and less shares to pay out the yield. Transferring money to the shareholders via a special dividend isn't going to happen.
A special dividend is not "giving away" anything. It is a transfer of assets from the company to its shareholders. There seems to be no plausible scenario where AAPL needs anywhere near the cash on hand PLUS all they will generate in coming quarters. Transferring it to shareholders so they can use it according to their priorities only makes sense. Not only are the cash balances much larger than Jobs had, the rates of return on them are much lower than he or anyone would have predicted.
Want to keep investors happy, increase the dividend, but don't do a one time give away. That just causes more fluctuations. Most tech companies don't do dividends and need lots of cash. Percentage wise apple isn't hoarding that much in assets. Many companies keep more money in cash, as a percentage.
they never had 150 billion under Jobs. If they don't give some to shareholders, they will have 200 billion in January. They don't need 200 billion sitting there collecting dust. It doesn't help the stock. I believe an increased divy is better because it will attract new investors. Perhaps they are planning a one timer and an increased 4% divy.
You have138 billion in the bank and add another 40 billion to it every year. What do you expect Steve Jobs would do, wait till it hits a trillion and let Congress take it with a windfall tax to close the budget hole?