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


To: iggyl who wrote (128341)3/19/2012 1:19:34 AM
From: XoFruitCake1 Recommendation  Respond to of 213182
 
. I'd rather Apple take a shot at using my money in a more productive way.

But the problem is that Apple find no way of using those cash.. If you look at their balance sheet in the last couple years, the cash keep increasing with nowhere to go. There is a limit on the capacity of any company to spend cash profitably. In Apple's case they are already moving as fast as they can in growing their market share. Having a bigger empire that is not profitable is not a good business. I think Apple is doing the right thing if they start to return cash to shareholders...



To: iggyl who wrote (128341)3/19/2012 3:11:52 AM
From: Cogito  Respond to of 213182
 
>>37 cents of every one of my dividend dollar goes to taxes. I'd rather Apple take a shot at using my money in a more productive way.<<

That means that 63 cents of every dividend dollar goes to you.

But wait, aren't dividends presently being taxed at 15%? That's what this page shows:

en.wikipedia.org

Are you adding the taxes Apple pays on earnings to your own tax rate? If you are, then I still don't get it. Apple has already paid its corporate taxes, so that money can't be used in any other way.



To: iggyl who wrote (128341)3/19/2012 3:33:45 AM
From: Cogito  Read Replies (1) | Respond to of 213182
 
I looked back at that Wikipedia page on dividend tax rates, and realized that I had missed the fact that it shows two different sets of rates. One for "ordinary" dividends and one for "qualified" dividends.

I don't know the difference, and I'm too tired to look it up now. But I note that the top rate of 35% on ordinary dividends applies only to people in the top income tax bracket.

My other comments still pertain, I believe, though I was wrong in thinking that the 15% rate applies across the board.