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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (126216)	2/24/2012 8:53:49 AM
From: Keith Feral	1 Recommendation Read Replies (2) \| Respond to of 213172

Well, Apple obviously decided it wasn't worth the trdeoff - for now. What's the point of a $5 dividend on a stock that moves $3 or $4 a day. It's pointless. No dividend will make sense on a $500 stock unless it's commensurate to the share price. That would require at least a $16 dividend to be viable. I would hate to see Apple start blowing $16 billion a year. That's almost 16% of their entire cash position right now, more than half of which is outside the US, which leaves Apple with about $50 billion in US cash. A $16 billion divvy would effectively be burning up 30% of their US cash reserves to finance a dividend around 3% right now. If the stock goes up another 50% this year, what was the point of paying out the $16 billion in the first place? Dividends should be paid to compensate for investors as accelerated growth begins to normalize. I don't think that now is the time to be burning cash with earnings growth still accelerating 50% this year. The biggest problem with a dividend in the near term would be investors freaking out every time their dividend yield began to fall as the share price increased.