Apple to start quarterly dividend, buybacks
For the past decade, Apple has been one of the top producing
stocks. They aren’t the most innovative
company, they aren’t using the most cutting edge technology. Rather they are taking technology, improving
it, and bundling it in a very user friendly package. This method has made people of all technological
abilities grow to appreciate Apple. They
have done such a nice job with it, that they have created almost a cult. This cult they have created does much of the
marketing for the company for free just by word of mouth. Whenever a new product or version comes out,
these people are the first to buy it, before considering whether or not they
actually need it. As a result of this,
Apple’s stock has constantly improved.
They follow the trend, that most tech stocks don’t pay a dividend. This is because they claim they want to invest
their funds back into research and development.
They now have almost 100 Billion in cash and investors want
them to do something with that money. Apple will use a small portion of their huge
amount of cash in order to buy back some employee stock, to make the rest of
the stock more valuable. They are also
going to create a quarterly dividend in which they will pay back to all of
their common stock holders.
Some investors are wondering if this will inhibit their
ability to stay as innovative as they have been.
Should Apple pay a dividend?
What should it be? Should it have
the expectation to increase every year as it does with numerous other
companies? If they have a bad year
should they still have to pay a dividend?
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