Monday, March 19, 2012

Apple's Dividend - Why All the Excitement?

So earlier this morning Apple announced a dividend. I don't understand the fuss.

A) It's simply what mature/big companies do. Perhaps Apple's culture and customers had a tough time accepting this? Perhaps it's part of what Tim Cook wants to do as CEO at Apple? Make Apple a bit more mature?

B) The dividend is very average. At $2.65 a quarter, that gives us a yield of 1.7%. It's good, but nothing stunning. By my calculations Walmart is at 2.4%. Microsoft is at 1.9%. GE is at 2.9%. It's higher than Cisco & Oracle, which started issuing dividends not so long ago (both were around 1 percent).

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