Intel has spend a fortune on R&D, CAPEX, and Contra Revenue toward the future. Apple has bought back it's stock to hide the fact that they are out of big money making ideas. What they are doing now is paying to inflate their balance sheet. By adding in a stock split it make it even more difficult to track. Apple has a lot of cash that they can use to keep this shell game going for a long time.
INTC is not down 1%. Today is ex-dividend day and the price is adjusted down by the dividend amount. Friday, INTC closed at $26.41 and without the 22.5 cent dividend, the unchanged price would be $26.185.
Apple announced their 7 for 1 stock split and historically, a split is good for the stock price. The split will help Apple share price.
This has never made sense to me - not saying you're wrong about the adjustment, more of a macro comment. I don't understand the logic behind adjusting the stock price. The dividend is a Balance Sheet change. In theory, the stock price is based on the valuation of the company, which clearly would include the cash position. But in reality, stock price has very little to do with the asset/book value of the company, and almost everything to do with the earnings potential of the company - the Income Statement (P&L) position of the company.
So, practically speaking, the payment of a dividend should have very little to do with the stock price valuation of the company.
So (again, in theory), this should be an arbitragable event. Now, full disclosure, I’m currently bearish on Intel stock – but trade it both ways historically. If you were bullish on the stock, an artificial 22 cent decrease in the stock price should offer an easy opportunity to buy the stock and make that amount back quickly.
Of course, the difference between theory and reality has bankrupted many a man…