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The Whining About Apple's Dividend Has Officially Begun

Joe Weisenthal

From our comments section, the whining about the Apple dividend has already begun.

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See Also:

Tim Cook Talks About Apple's New Dividend
Apple's Cash Balance Should Continue To Grow Rapidly--Even With The Dividend And Buyback
Here's What The Smart Money Thinks Apple Will Do With Its Cash

source: www.businessinsider.com

19 Mar 2012

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Morgan Stanley: Apple Is Probably Going To Jack Up Its Dividend (AAPL)

www.businessinsider.com Jay Yarow 91 days ago

david einhorn

dividend yield

morgan stanley

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cash balance

Bad news for hedge funder David Einhorn: Apple is likely to jack its dividend, says Morgan Stanley analyst Katy Huberty. Huberty met with Apple's CFO. After the meeting she wrote that Apple will "likely increase cash return to shareholders." She writes: Apple could return more cash to shareholders given its cash balance is $40B higher vs. March 2012. Our analysis suggests Apple can match the S&P IT sector’s average FCF payout of 68% if it returns $28B in FY13, implying a 6% total yield. High mix of international cash limited flexibility in the past but raising low-interest debt can h... Read similar

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Mega Apple Bull Brian White's Three Part Plan For The Stock To Recover (AAPL)

www.businessinsider.com Jay Yarow 66 days ago

Brian White of Topeka Capital is a super ultra mega bull on Apple. Despite the depressed Apple stock price, and the very real possibility Apple could miss its own guidance this quarter, he's been pounding the table about why Apple is a buy all the way down. Today, he lays out a three point plan for Apple to rebound: "Phase 1 - Pay Out More Cash to Win Over True Value Investors." Apple should bump its quarterly dividend to $5.00 per share, up from $3.75 (annual yield of 4.4 percent, up from 3.3 percent). It should also authorize $100 billion in share buy backs over the next five years. ... Read similar

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Tim Cook Just Gave Apple Employees A $40 Million Bonus (AAPL)

www.businessinsider.com Owen Thomas 120 days ago

restricted stock units

Apple just declared a cash dividend of $2.65 a share, payable in mid-February. That's a nice bonus for shareholders. But employees are getting a reward out of it, too. Apple has recently been handing out restricted stock units—a form of equity that vests over time like stock options, but gives workers shares outright rather than giving them the right to buy shares at a set price. Last May, it adopted a new plan to pay employees the equivalent of a dividend whenever it paid shareholders a dividend. According to Apple's most recent annual report, it has 15 million RSUs outstanding. At $2.6... Read similar

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'Apple Is Potentially Facing A Very Rough Two-Year Period,' Says Jefferies (AAPL)

www.businessinsider.com Jay Yarow 86 days ago

Apple should not sign up for hedge fund manager David Einhorn's preferred stock plan, says Jefferies analyst Peter Misek. He thinks Apple is going to need its cash to ride out a "potentially very rough two-year period." He prefers dividends and buybacks because they provide flexibility. Einhorn wants Apple to issued preferred stock that has a perpetual dividend. He has scolded Apple for having a "depression-era mentality" when it comes to cash. He thinks Apple needs to stop hoarding its $137 billion in cash, and start distributing it to shareholders. Misek sees some big issues confronting Appl... Read similar

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Get Ready For Apple iBonds (AAPL)

www.businessinsider.com Sam Ro 30 days ago

quarterly cash dividend

interest rate environment

mature company

bond investors

finance professor

Apple announced today that it would crank up its quarterly cash dividend by 15% to $3.05 per share, and it would expand its share buyback plan by $50 billion to a total of $60 billion. Perhaps the most interesting thing about this ramp up in its capital return plan is that it will finance some of it by borrowing money. "In conjunction with the expanded return of capital program, the Company plans to borrow and expects to announce more details about this in the near future," said management. This means that Apple could soon offer bonds. We'll call them iBonds. This will be a welcome devel... Read similar

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10 Things You Need To Know This Morning (AAPL, GOOG, MSFT)

www.businessinsider.com Jay Yarow 72 days ago

reality distortion field

Good morning! Here's the big news to start your day. After, come back to SAI all day for the latest. The big problem for Apple is that it has lost its reality distortion field, and now it looks utterly mortal. A leaked ad shows Google's great Google Now service is coming to the iPhone and iPad. Apple fanboys are convinced the Wall Street Journal has an anti-Apple agenda. IDC projects Android will lead the market in tablets by the end of the year, which is pretty bad for Microsoft and Apple. (Assuming it happens.) Walt Mossberg explains why Apple gets all the best apps. Apple will re... Read similar

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EINHORN ON APPLE: You're Wrong, Henry — I CAN Create Something Out Of Nothing!

www.businessinsider.com Henry Blodget 105 days ago

something out of nothing

David Einhorn, the hedge-fund manager at Greenlight Capital who wants Apple to issue preferred stock as a way of unlocking value for shareholders, was kind enough to do a brief Q&A with me about the article I wrote earlier. In that article, I described Einhorn's Apple proposal as "just financial engineering" and argued that even he couldn't create something out of nothing. By issuing preferred stock, I argued, Apple would just depress the value of its common stock- — so that the transaction would not, in aggregate, create much new value for shareholders. As you can see in the e... Read similar

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REPORT: Apple's Plan For Cash To Shareholders Coming In The Spring (AAPL)

www.businessinsider.com Jay Yarow 72 days ago

david einhorn

share buyback program

hedge fund manager

real options

chon

Apple is going to do something with its cash this spring, says Gina Chon at Quartz. "Apple is leaning toward additional dividends or a share buyback program as part of its effort to return more cash to investors, according to sources," reports Chon. This means, of course, that it is not going with hedge fund manager David Einhorn's iPrefs, which were a special class of stock that paid a perpetual dividend. She also says Apple was working on its dividend/buyback plan before Einhorn started kicking up a fuss. However, Apple might have decided to bump higher the size of its dividend thanks to Ein... Read similar

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Great News, Rich Americans! Congress Just Raised Taxes On Workers While Saving Investors Billions

www.businessinsider.com Henry Blodget 143 days ago

Most of the attention around the Fiscal Cliff deal tax deal has been focused on income taxes. The way the deal went down, a tiny portion of American taxpayers--households that earn more than $450,000 per year--will see their income taxes rise modestly, from 35% to 39.6%. Everyone else's income taxes will stay the same. But that's not the whole story. By not addressing the payroll tax, the Fiscal Cliff deal will also result in a tax hike for all working Americans, including those in the middle and poor classes. All income up to $110,000 will now be socked with a 2 point increase in the payroll ... Read similar

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It's Time For People Who Whine About Crappy Airline Service To Admit They're Getting Exactly What They Want

www.businessinsider.com Henry Blodget 75 days ago

cheap bastards

selection criterion

airline service

lowest possible price

virgin atlantic

If there's one thing that pretty much everyone agrees on it's that flying these days sucks. The litany of complaints about how horrible and degrading it is to fly is unending, as is the nostalgia for the days when flying was a classy and elegant way to travel. But it's time for everyone who whines about how lousy flying is to at least acknowledge one thing: The reason flying is the way it is is because that's exactly what today's fliers want. Specifically, fliers want: Safe, rapid travel between two cities The lowest possible price Oh, sure, people who fly won't say that they're getting wha... Read similar

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Here's Why Amazon's Stock Is Soaring While Apple's Is Cratering

www.businessinsider.com Henry Blodget 114 days ago

sophisticated investors

There has been much frustration and outrage among two groups of investors in recent days--Apple bulls and Amazon bears. Apple reported a quarter that beat Wall Street's printed expectations--and the stock tanked. Amazon reported a quarter that mostly missed Wall Street's printed expectations--and the stock soared. Meanwhile, Apple's stock is trading at low multiple of 10-times earnings, and Amazon's stock is trading at an "infinite" price-earnings ratio. So what gives? Have investors gone insane? Only the future will tell us for sure whether the prices investors are currently paying for Apple... Read similar

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THE BULL CASE FOR APPLE

www.businessinsider.com Jay Yarow and Henry Blodget 36 days ago

Wall Street has basically given up on Apple. The stock has tanked more than 40% from a peak of $702 last September to a new low of about ~$406 this morning. The stock is also now trading at a price/earnings ratio of 9X. That P/E ratio is well below the market average, which is about 15X. It is also a valuation so low that it is generally awarded only to companies that Wall Street thinks are permanently screwed. (Think Dell, BlackBerry, or Hewlett Packard). Apple also has ~$150 billion of cash and no debt, which means that the market's assessment of Apple's actual business is even m... Read similar

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Apple CEO Tim Cook Launches A Preemptive Strike Before Congress Grills Him Over Taxes (AAPL)

www.businessinsider.com Jay Yarow 7 days ago

Apple CEO Tim Cook is going to appear before Congress next week to talk about its overseas profits, cash, and taxation. Ahead of his appearance, Cook is doing a round of interviews with political reporters to lay the groundwork for what he'll be speaking about. Politico spoke with Cook and says he's going to offer some ideas for comprehensive tax reform, although it didn't detail what they might be. Here are Cook's quotes to Politico: "I hope to make some clear recommendations, and I trust there will be receptive parties there." "We don't have a large presence in Washington, as you probably... Read similar

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10 Things You Need To Know This Morning (GOOG, AAPL, HPQ)

www.businessinsider.com Nicholas Carlson 87 days ago

Good morning! We gathered the news below. After, come back to SAI all day for live news and analysis. @Pontifex will live on, if the next pope wants. The New Yorker's James Surowiecki: "Apple’s competitors are finally doing a better job of making the kinds of phones that customers want." The durability of the curved screen on the iWatch will be Apple's biggest challenge. Quora is bigger in India than it is in the US. This startup picks up your snail mail for you and then converts it into email. HP CEO Meg Whitman, who once ran for California governor as a Republican, now supports gay ma... Read similar

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10 Things You Need To Know This Morning (GOOG, MSFT, AMZN, SNY, AAPL)

www.businessinsider.com Nicholas Carlson 92 days ago

Good morning! We've got the overnight news below. After, come back to SAI for live news and analysis all day. How's this for wearable computing? An eye implant restored the vision of 8 blind people. In 2012, Google began charging for product listings. Now they are performing 2X as good – and beating Amazon product ads for ROI. Flickr's iOS app got another major update. This appears to be Apple's patent application for the widely reported "iWatch." This iPhone cover lets you stick it to any surface. Handy. Hedge funder David Einhorn will hold a conference call today to discuss his p... Read similar

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Apple Is Likely To Take On Debt To Pay Out A Big Dividend, Says Bernstein (AAPL)

www.businessinsider.com Jay Yarow 38 days ago

Apple is likely to announce its plans for a new, bigger dividend in May, weeks after it announces earnings, says Bernstein analyst Toni Sacconaghi. Sacconaghi says Apple is talking to large shareholders about how it should distribute its cash. He has spoken with some of the shareholders, and he reported his findings. We don't have the note, but Philip Elmer DeWitt at Fortune wrote it up. The key bits: Shareholders want Apple to return 50% of free cash flow to shareholders on annual basis. This would equal ~$22 billion a year. If Apple does this, it could lift the stock by $30. If not, the sto... Read similar

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APPLE TO GIVE AWAY $100 BILLION TO SHAREHOLDERS (AAPL)

www.businessinsider.com Joe Weisenthal 30 days ago

restricted stock units

Responding to popular demand, Apple is massively boosting its buyback and dividend. Here are the key bullet points: It will now use $100 billion worth of cash, an increase of $55 billion from previously announced plans. The dividend will be increased 15%. Dividends are now $3.05 per share. The company also says it plans to borrow money as part of cash return plan. The full release is below. It has come in conjunction with earnings. ----------------- Apple® today announced that its Board of Directors has authorized a significant increase to the Company’s program to return capital to... Read similar

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Winter Is Coming For Apple, Warns Gene Munster (AAPL)

www.businessinsider.com Jay Yarow 59 days ago

Piper Jaffray's Gene Munster is joining the parade of Apple analysts trying to lower expectations for its next two quarters. He is calling for $41.4 billion in review for the March quarter, which lower than the street estimates of $42.8 billion. He's calling for 35.5 million iPhones, which is in line with buy side expectations. He thinks the Street is at 37 million iPhones. Munster is also at 3.8 million Macs versus 4.2 million for the Street. He has a gross margin of 38 percent, while the Street is at 39 to 40 percent. Also, he believes there will only be a small increase in the dividend, fr... Read similar

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Apple Now Has The Same Credit Rating As The US Government (AAPL)

www.businessinsider.com Matthew Boesler 30 days ago

share buyback program

Apple today announced that it would be issuing bonds in order to pay for its new shareholder dividend and share buyback program. Credit rating agency Standard & Poors gave the new Apple bonds a 'AA+' rating, outlook stable. That's the same rating S&P has on U.S. government debt, which it downgraded from AAA in July 2011. Right now, there are only four AAA rated companies in the United States: Johnson & Johnson, ADP, Exxon Mobil, and Microsoft. In other words, not a bad first foray into the credit markets for Apple. Please follow SAI on Twitter and Facebook.Join the conversation abo... Read similar

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Noooooo, Apple! Don't Do A Special Dividend! Buy Back $50 Billion Of Stock!

www.businessinsider.com Henry Blodget 73 days ago

Apple stock just popped on a rumor that the company will dig into its mountain of unneeded cash and issue a big fat "special dividend" to shareholders. On the one hand, this is a positive: Apple should do something with the cash. On the other hand, it's a negative: Of the three most sensible ways to return cash to shareholders, a "special dividend" is the least flexible and least efficient. The two other options are: Increase in the regular dividend (perhaps at least a doubling) A major stock buyback Of these two options, the stock buyback is the most efficient and flexible option. Why? Bec... Read similar

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