Apple's dividen, buy back, stock split???

[johnny333]

Here's something that might be of interest to people who have money invested in Apple stock.

Apple will host a conference call on Monday at 9 a.m. Eastern, 6 a.m. Pacific to discuss what it plans to do with its $100 billion cash balance.

 

[Charlie258]

Here's something that might be of interest to people who have money invested in Apple stock.

Apple will host a conference call on Monday at 9 a.m. Eastern, 6 a.m. Pacific to discuss what it plans to do with its $100 billion cash balance.

Don't be too hard-up for Dividend. It can lead you into a Trap.

Last year, Singapore punters bought into a well-known Airline stock for its Extraordinary One-Time Dividend of $1.40. Ended up the stock price crashed $4.00 just after they buy in. Now, these trapped punters call themselves 'long term investors.'

 

[johnny333]

Don't be too hard-up for Dividend. It can lead you into a Trap.

Last year, Singapore punters bought into a well-known Airline stock for its Extraordinary One-Time Dividend of $1.40. Ended up the stock price crashed $4.00 just after they buy in. Now, these trapped punters call themselves 'long term investors.'

I've long given up investing in Spore because I have no connections to insider info

Apple is now the largest company by valuation. Larger than both Google AND Microsoft put together. They have $100 billion in cash. With each quarter this cash pile is growing.
With the success of their product line I doubt they are going into decline, at least not for a few years. Just last week, their shares reached an all time high of US$600 Market analysts predict their share prices to rise to the $700+ levels.


This cash pile is becoming an embarrassment & many investors have expected Apple to do something like a dividen for some time. By offering a dividen, more money managers can now consider investing in Apple. There are some funds that can only invest in companies that provide a dividen. This is because they represent clients who are retirees looking for an income stream.

PS: If they do offer a dividen. I am going to re-invest it. Probably in Apple shares

 

[Scrooball (clone)]

If they do offer dividends, it may or may not be a good thing. For one, after giving out dividends, the capital appreciation will dip abit.

 

[erection2015]

unwilling long term investors.....never mind .....its a great way to fly.

Don't be too hard-up for Dividend. It can lead you into a Trap.

Last year, Singapore punters bought into a well-known Airline stock for its Extraordinary One-Time Dividend of $1.40. Ended up the stock price crashed $4.00 just after they buy in. Now, these trapped punters call themselves 'long term investors.'

 

[erection2015]

bro ...as Scrooball ( clone ) has stated...dividends can be a good or a bad sign...but i think Apple is very strong at the moment and doing good bzness.

So capital appreciation plus generous dividends is a good possibility. I think ya...go for it bro.

I've long given up investing in Spore because I have no connections to insider info

Apple is now the largest company by valuation. Larger than both Google AND Microsoft put together. They have $100 billion in cash. With each quarter this cash pile is growing.
With the success of their product line I doubt they are going into decline, at least not for a few years. Just last week, their shares reached an all time high of US$600 Market analysts predict their share prices to rise to the $700+ levels.


This cash pile is becoming an embarrassment & many investors have expected Apple to do something like a dividen for some time. By offering a dividen, more money managers can now consider investing in Apple. There are some funds that can only invest in companies that provide a dividen. This is because they represent clients who are retirees looking for an income stream.

PS: If they do offer a dividen. I am going to re-invest it. Probably in Apple shares

 

[johnny333]

bro ...as Scrooball ( clone ) has stated...dividends can be a good or a bad sign...but i think Apple is very strong at the moment and doing good bzness.

So capital appreciation plus generous dividends is a good possibility. I think ya...go for it bro.

I've held some of my Apple shares for 20+ years. It's been a good investment. Definitely better than what I have in my CPF:( Even my RRSP investments in Canada are doing better than my CPF
In Spore you have to plan for your own retirement since you can't rely on that ponzi...., I mean CPF scam

I was thinking of getting one of the new iPads but they are unsurprisingly out of stock. So instead I plan to get a Mac Pro laptop when they are introduced in a few months time. I was making do with a PC but I am now worried because recently there was an unauthorised charge made on my visa card. I feel safer making online purchases using a Mac then on a PC. I don't know how they got my visa cards number? Maybe they got my number throug my PC?

 

[Scrooball (clone)]

I suggest that you cancel your card and ask the bank to re-issue a new one. Recently, all banks have started sending out new type of credit cards with a safer magnetic chip authenticity. If you were using those old cards, someone could have swiped your cards to extract those information.


http://www.bankrate.com/brm/news/cc/20020524a.asp

Someone, somewhere made an extra swipe of your credit card. It could be a waiter or a store clerk or anyone you've handed your credit card to for payment.

Instead of just charging your card, the thief made an extra swipe of your credit card into a small hand-held device known as a skimmer.

"Think of a skimmer as a net. It takes information right off the card itself," says Brian Marr, a spokesman for the U.S. Secret Service.

The skimmer pulls the data from your card, giving the thief all the information needed to make a counterfeit card. A skimmer can hold card data from hundreds of different credit cards.

"Once this information has been downloaded into a skimmer it can be downloaded into a computer and e-mailed anywhere in the world," Marr says.

Credit card skimming has become a worldwide problem. Card losses due to skimming exceed $1 billion a year.

"You're seeing this anywhere credit cards are put into a point-of-sale database," Marr says. "With technology, there's really no boundary."

Skimming and counterfeit credit card scams are widespread in Europe, Asia and Latin America. They're growing problems in the United States.

"A Far East factory will do as many as 5,000 cards a night, and the next day those cards are in a suitcase on the way to Europe," says George Wallner, chairman and chief strategist at Hypercom Inc., a leading provider of point-of-sale card payment terminals.

Smaller-scale skimming operations are common as well. Consider this scam ring in Florida, in which seven people were indicted in April.

Two waitresses skimmed a large number of credit cards from an Orlando restaurant. The waitresses then sold the credit data to a middleman who sold the information to a group making counterfeit credit cards in Miami.

"Technology giveth and technology taketh away, and we're seeing the dark side of some of that," says Robert Finkbeiner, an assistant statewide prosecutor in Orlando, Fla. "It's a pretty insidious thing."

 

[erection2015]

bro....i think there was a thread on this sort of goings on . The thread could be about 2 weeks old. There were some inputs there.

I was making do with a PC but I am now worried because recently there was an unauthorised charge made on my visa card. I feel safer making online purchases using a Mac then on a PC. I don't know how they got my visa cards number? Maybe they got my number throug my PC?

 

[johnny333]

I suggest that you cancel your card and ask the bank to re-issue a new one. Recently, all banks have started sending out new type of credit cards with a safer magnetic chip authenticity. If you were using those old cards, someone could have swiped your cards to extract those information.

bro....i think there was a thread on this sort of goings on . The thread could be about 2 weeks old. There were some inputs there.

[/B]

When I called the bank(Maybank) about the suspicious charges they immediately cancelled the card & issued me with a new one.

From this incident I am a little more paranoid & in future will only do online purchases using a Mac. I will continue to use my PC only for casual browsing. I actually don't like to use my card preferring to pay by cash. However the banks are using incentives to encourage visa card use & I think I'll have enough points to get an iPad :o

 

[johnny333]

http://www.bbc.co.uk/news/business-17434328

Apple to pay dividend and buy back shares
Apple employee counts cash in front of the new iPad Apple will pay a dividend for the first time since 1995
Continue reading the main story


Apple has said it will use its cash to start paying a dividend to shareholders and to buy back some of its shares.

The technology giant said it would pay a quarterly dividend of $2.65 per share from July.

It will buy back up to $10bn (£6.3bn) of its own shares starting in the company's next financial year, which begins on 30 September 2012.

At the end of last year, Apple revealed it had $97.6bn in cash. It expects to use $45bn over the next three years.

It is the first time Apple has declared a dividend since 1995.

"We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure," Apple chief executive Tim Cook said in a statement.

"You'll see more of all of these in the future.

"Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase programme."

Apple shares have surged to about $600 in recent days, making it the world's most valuable company, with a stock market value of more than $500bn. Ten years ago, the shares were trading at about $10.

Booming sales of iPhones and iPads have helped the firm build up its huge cash pile.

"This is consistent with what we, and I think most, expected them to do, which is to address shareholder concerns around the huge cash stockpile while retaining enough of a reserve to keep a wide range of strategic options on the table," said John Jackson from CCS Insight.

"This, plus the buyback, should continue to bolster the soaring share price."

 

[Scrooball (clone)]

This is crunch time. Once more institutions buy into AAPL, volatility will be higher.

 

[johnny333]

This is crunch time. Once more institutions buy into AAPL, volatility will be higher.

They are not doing a stock split, so the price share should remain high, around $500+ to $600 plus. It's too expensive for your typical mom & pop investor thus limiting the stocks to institutional buyers which are likely to have a longer view. Especially if they are attracted by the dividen which will be paid over time.

 

[Scrooball (clone)]

They are not doing a stock split, so the price share should remain high, around $500+ to $600 plus. It's too expensive for your typical mom & pop investor thus limiting the stocks to institutional buyers which are likely to have a longer view. Especially if they are attracted by the dividen which.

What institutions do is they allow the mom and pop people to 'chip' in to buy. This will in turn lead to greater volume of investments into the stock. Institutions may or may not take a long-term view to this stock.

 

[johnny333]

I'm watching CNBC now & plenty of the disussion is about Apple & it's dividen. There are funds which own 300,000+ of Apple & these funds will be forced to pare their holdings to keep it within a certain proportion of a funds holding, so too will there be funds which will now be interested to buy AAPL shares because it now pays a dividen.

In fact the surge from $540+ to $600 may be due to the "baked in expectation" of Apple offering a dividen. Tim Cook did hint there would be a dividen & many of the investors took the hint

I know there are skeptics out there about the companies growth prospects. If the company was uncertain of it's future they wouldn't be talking about buy backs & dividens. Maybe the following points made by Apple will provide some clarity. I'm confident that Apple is still a good investment for the next few years & I will probably re-invest the dividen I receive back into Apple shares


http://www.appleinsider.com/article...s_dividend_stock_buyback_conference_call.html



Following Apple's announcement on Monday that it will pay a quarterly dividend of $2.65 per share as well as initiate a $10 billion share buyback program, executives from the company participated in a conference call with analysts and investors.

Apple Chief Executive Tim Cook noted that even though the company sold 37 million iPhones last quarter, it represented less than 9 percent of all handset sales. "The potential for iPhones is enormous."
On the launch of the new iPad: "It just keeps getting better." 55 million iPads sold to date, but no sales figures on the new iPad given.
Apple still has less than 6 percent PC market share as the Mac continues to grow.
"We are innovating an incredible pace."
Apple is also investing in distribution around the world. "We don't see ceilings to our opportunities," Cook said.
All of this has led to Apple amassing a "substantial amount of cash." This has led to increased research and development, acquisitions, new retail stores, building out of infrastructure and more. "You will see all of these in the future," Cook said.
"We are going to initiate a dividend and share repurchase program. We have thought very deeply and very carefully about our cash balance. We will continue to invest in the business."
Innovation remains the most important focus at Apple, and Cook said the new program won't make them lose sight of that.
The new program is expected to broaden Apple's investor base by attracting new investors that don't currently own Apple stock.
Cook said they plan to review the program periodically.
Chief Financial Officer Peter Oppenheimer said Apple has been "very disciplined" with its cash. In fiscal 2011, its cash increased by $31 billion, with $21 billion coming from abroad.
Apple wants to maintain the flexibility to take advantage of investment opportunities that present themselves.
None of Cook's unvested RSUs will participate in dividends, at the CEO's request.
"We remain very confident in the future of our business, are extremely enthusiastic about the opportunities that lie ahead, and look forward to executing our plans to initiate a dividend and share repurchase program," Oppenheimer said.
Dividend payouts are expected to be more than $2.5 billion per quarter, or more than $10 billion per year, which would make Apple one of the highest dividend payers in the U.S.
"We actually do love to announce new products, we just don't do it during conference calls," Cook said when questioned by one analyst about its future product line.
"I am extremely confident in our future. The pipeline is full of stuff. I think customers are going to be incredibly pleased with what they see coming out," Cook said.
Apple's dividend and share repurchase program will be done with cash held in the U.S. Bringing its overseas cash to the U.S. would cost Apple a great deal in taxes and Oppenheimer said the company has no plans to do so.
On stock splits: "This is something that we have looked at while we were looking at this cash question," Cook said. It's something they "continue to look at."
Sales of the new iPad: "We had a record weekend and we're thrilled with it," Cook said.
Tens of billions of dollars of Apple's cash remains 'stuck' overseas and repatriating that cash would result in major tax implications. Apple has expressed this concern to Congress, as it believes existing tax laws provide significant disincentives to corporations looking to bring cash back into the country.
Apple opted to go to the hybrid (dividend/stock-repurchase) approach after much "analysis and thinking" and listening to the feedback from their investors.
The primary objective of the stock repurchase program is to reduce dilution from the ongoing distribution of shares to its employees and executives as part of their future compensation.
As for Apple's domestic cash, Cook noted that "There are a wide range of potential investments" that he obviously won't talk about today.
There's 'no magic number' in terms of the amount Apple thinks it should retain as a cash balance.
The primary use of Apple's cash war chest, above all, remains in the development of products.