Just MHO...
There are folks that invest in growth stocks, and folks that invest in income stocks. Those that are looking for growth don't care a whit about dividends, those that invest for income will mostly shun Apple with a ~2% dividend. As stockholders, we should want the stock broadly owned and there should be a reason for everyone to own the stock.
The response to to the Einhorn suggestion can't be ignored, by shareholders or the Board. The worm is turning; a lot of people are saying "show me the money". They want an end game... real $'s not perpetual promises of growth.
I just retired, like many boomers are doing right now, and was ready to sell much of my Apple holdings, as it just doesn't provide the cash return I have modeled. The recent events have stayed my hand.
The bottom line is there is a balance... my guess is +/- 4% that will max ownership and share price without constraining Apple growth, at all. Based on current earnings. Einhorns plan would probably give a huge initial pop, but without a lot of following appreciation. A big increase in the dividend would be my preference, with future steady increases, every year.
Everybody has a different perspective depending on their situation, I guess. |
