It would make more sense to inrease shares repurchase. Increasing dividend makes sense if your stock trades in a range. Apple if not just a value play; it is still a growth stock.
Only buyback makes sense to the company/management, dividend doesn't help at all. Guess it's not going to have any announcement till they used up that 10b money announced last year. But if the stock can keep going up without an announcement, I'm fine with it:-) at least it appears the "no announcement yet" puts in a floor for the share price, instead of a sell off excuse week(s) ago.
just need to raise it every 6 months or so a little at a time that will get wall st to notice it would be better than popping it up 56% all at once what do you do for a encore after that huh!
Wrong. That's kids yo-yo.
This is the big league, you deliver or the stock gets crushed. If they raise it big now tens of billions in new dollars will pour into the stock for months to come from funds which invest in growth stocks with high dividends. These funds set limits and invest only in the highest laying stocks.
If they raise it to 4.14% the stock will continue going up with momentum for months to come as tons of new funds take large positions. $600 or even higher would come in the next 6 months or even sooner depending on new developments. But inching it up just shows immaturity and indecisiveness.
4.14% dividend and $50 Billion buy back over the next 3 years. And announce you spent the other $10 Billion this quarter on buying back shares. That would show you're serious and you know what you're doing. Cause so far our little Cookie playing pretend CEO hasn't shown a single fiber of CEO-type qualities.
Sentiment: Strong Buy
I doubt it.
There's no point to raise it if you're barely raising it. It would only cause a sell off. It's gonna be around $4. Reason is that expectations of a good increase is too high and they can afford it. Also, its an increase so if sales go down in the future then they can always lower it. That's why an increase is better than a one time huge dividend.
Even at the expected 4.14% they can pay the $16 Billion from the cash flow if a single quarter. It's really not that much. I would increase it to $4 and then announce a $50 Billion 3 year buy back. Even with all this, their cash would never drop below $120 Billion even if they have zero growth from here.
And in fact would still keep growing their cash position. That said, Cook really needs to man up and make some strategic big buys: Blackberry, Nokia, Sprint, T-mobile, Comcast, Twitter, Sony, Zynga, Yahoo or Netflix. These are all acquisitions that would make a lot of sense for future growth, a lot more than just giving away $50 billion in a onetime dividend. For that money they can easily buy 3 of the above and change (once again) the entire landscape if the phone and computer industry.
Sentiment: Strong Buy