aapl605
Apple's share price today closed above $600 for the first time, hitting new highs after hours as well. It's been a busy day for Apple shareholders, with the pre-trading announcement that the company will be initiating a strong quarterly dividend and has authorized $10 billion share buyback program.

After the final bell, Apple announced that the company moved more than 3 million new iPads in the first four days of eligibility, making the new iPad the fastest selling tablet in the world.

AAPL closed at $601.10, an all-time high, and nearly reached $605 in after hours trading. Apple should report earnings for the first calendar quarter in late-April, after reporting record earnings and sales for the holiday quarter.

Top Rated Comments

dejo Avatar
121 months ago
AAPL stock was up 2.65% the same day they announced a $2.65 dividend. Ooh, freaky!
Score: 5 Votes (Like | Disagree)
cvaldes Avatar
121 months ago
You still don't understand cash flow, do you?

Look, after everything they did, Apple added about $38 billion in cash to its hoard last year.

Let's say that Apple's profits remains the same over the next three years (unlikely) and they use $15 billion each year for the dividend/share buyback program. They would still be adding $23 billion each year. Today's $98B hoard would end up being over $165B in March 2015, even after the $45B program ended.

Also, Apple is likely buying components with foreign cash, not U.S. domestic cash. Remember that despite all of Apple's strategic component pre-purchases, they are still growing cash.

You need to understand that repatriating cash back to the USA is particularly expensive tax-wise.

Remember that the share buyback program is there to prevent share dilution from RSUs. In the next few years, some senior Apple executives are going to see their option incentives become available to exercise. If Apple doesn't buy back shares, they would have to issue new ones, which would dilute the value of the existing shares. Apple grants options to many employees for excellent performance, etc. (they're called the "golden handcuffs" for good reason), but those shares have to come from somewhere. Many senior management team members were granted options as an incentive for them to stay with the company, especially after Steve died. Basically, Apple promised these execs a pile of money in the future without saying where it was going to come from. Now they said "we going to use some of our cash now and set it aside for when that day comes."
Score: 3 Votes (Like | Disagree)
Eatsleepdrivesc Avatar
121 months ago
Go Apple! Thats a lot of new IPads!
Score: 3 Votes (Like | Disagree)
cvaldes Avatar
121 months ago
The dividend allows AAPL to be included in a certain class of investments that require dividend payouts like income mutual funds. This will probably decrease decrease trade volatility in the long run.

Note that the dividend payout is tiny and really doesn't stop AAPL from being a growth stock.

The $40B dividend and share buyback program (over three years) is less than the cash flow projections, so Apple would end with even more cash anyhow since they are spending cash slower than they are accumulating it.

Even by purchasing real estate, developing new facilities, making strategic component purchases, acquiring companies, Apple still isn't spending as much as it makes.

They probably looked at this several times and decided that a hundred billion dollars in the piggy bank was enough for them to operate their business effectively plus provide a safety net for bad times.

As an AAPL investor, I'm fine with a few dividends, but that's not what I was hoping for when I bought these shares. I never expected AAPL to be an income stock.

It's not like Apple is giving up capital growth by providing equity income. There's still plenty of growth potential in Apple.
Score: 2 Votes (Like | Disagree)
Wild-Bill Avatar
121 months ago
Oops. Wrong thread
Score: 1 Votes (Like | Disagree)
SuperCachetes Avatar
121 months ago
Here's a quote from a poster in another forum. I agree with the point their making.

The poster you are quoting clearly does not understand where Apple's cash comes from and that it isn't static going forward. :rolleyes:
Score: 1 Votes (Like | Disagree)

Top Stories

iphone12protriplelenscamera

Apple's Orders for Key iPhone 13 Camera Component Expected to Outstrip Entire Android Market

Wednesday June 9, 2021 12:47 am PDT by
Major camera upgrades coming to the iPhone 13 series are putting increased pressure on suppliers to meet Apple's demand for key lens components, according to a new DigiTimes report. Apple has reportedly put Taiwan-based makers of voice coil motor (VCM) components on notice to increase their capacity by 30-40% in order to meet the company's demand, which is expected to outstrip the entire...
macos monterey setup assistant

macOS Monterey Allows You to Erase a Mac Without Needing to Reinstall the Operating System

Wednesday June 9, 2021 4:41 pm PDT by
It's been a few days since Apple announced macOS Monterey, and we continue to dig through new features that weren't mentioned during the WWDC keynote, including a much more convenient way of erasing a Mac. Following in the footsteps of the iPhone and iPad, the Mac has gained an "Erase All Content and Settings" option on macOS Monterey. The option allows you to erase all user data and...
EEC Apple iphone 13

Apple Registers iPhone 13 Models in Eurasia Ahead of September Launch

Friday June 11, 2021 2:16 am PDT by
Nashville Chatter Class has discovered a new Russian-language regulatory filing in the Eurasian Economic Commission (EEC) database pointing towards several unreleased iPhone 13 models that Apple will be launching in the fall. Versions of iPhone running iOS 14 are listed with the model numbers A2628, A2630, A2634, A2635, A2640, A2643, and A2645. None of the numbers correspond to Apple's...
Dark Sky App Featured

Dark Sky iOS App, Website, and API Now Scheduled to Remain Available Until End of 2022

Thursday June 10, 2021 7:34 am PDT by
Last year, Apple acquired the weather app Dark Sky, and shortly after its purchase, Apple shut down the app for Android. Despite the revamped iOS 15 Weather app taking heavy inspiration from Dark Sky, the weather's app standalone iOS app, web app, and API will remain available until the end of next year, compared to the end of this year, as previously planned. Dark Sky announced in an update ...
mr white ipod touch 5 protoype3

Unreleased iPod Touch 5 With Chamfered Edges and 30-Pin Dock Connector Shared Online

Thursday June 10, 2021 2:05 am PDT by
Occasional leaker Mr White has today shared interesting images on Twitter of what appears to be an old-school fifth-generation iPod touch prototype with chamfered edges and a brushed aluminum finish. The original iPod touch 5 that Apple released in October 2012 had a unibody anodized aluminum chassis with rounded edges, and was available in several colors, including slate. Another...
live text macos monterey

Several macOS Monterey Features Unavailable on Intel-Based Macs

Wednesday June 9, 2021 8:23 am PDT by
While there are many great new features in macOS Monterey, several of them are not available on Intel-based Macs, according to Apple. On the macOS Monterey features page, fine print indicates that the following features require a Mac with the M1 chip, including any MacBook Air, 13-inch MacBook Pro, Mac mini, and iMac model released since November 2020:Portrait Mode blurred backgrounds in...
ipad mini 6

Next iPad Mini Will Allegedly Feature Thinner Bezels, USB-C Port, and Touch ID Power Button

Friday June 11, 2021 1:13 pm PDT by
On his newly launched Front Page Tech website, leaker Jon Prosser has shared renders showing off the alleged design of the next-generation iPad mini, which he says are based on schematics, CAD files, and real images of the device. In line with details shared earlier this month by Bloomberg's Mark Gurman and Debby Wu, Prosser claims that the new iPad mini will feature slimmer bezels around...
apple logo plain

Trump Administration Subpoenaed Apple for Data on Two House Intelligence Committee Democrats

Thursday June 10, 2021 6:21 pm PDT by
When investigating leaks of classified information during the early days of the Trump Administration, the United States Justice Department subpoenaed Apple for metadata from the accounts of at least two Democrats on the House Intelligence Committee, reports The New York Times. Apple was also required to provide data from their aides and family members, with the DoJ requesting the records of...
macos monterey tidbits feature copy

macOS Monterey Tidbits: Animated Memoji on Login Screen, Change the Color of the Mouse Pointer, and More

Friday June 11, 2021 10:27 am PDT by
We've highlighted several new features coming in macOS Monterey, such as Low Power Mode and the option to erase a Mac without reinstalling the operating system, but there are some smaller tidbits that we wanted to share. Animated Memoji on Login Screen One small but fun new feature in macOS Monterey is the addition of a personalized Memoji on the login screen, complete with animated facial...
ios15 mail privacy feature

Apple Putting a Stop to Email Tracking Pixels With Mail Privacy Protection in iOS 15 and macOS Monterey

Thursday June 10, 2021 11:03 am PDT by
Tracking when you've opened up an email and what you've read is something that many companies and advertisers rely on for their marketing efforts, plus there are email clients out there designed to let users know when the emails they've sent have been opened up. Much of this tracking is facilitated by remote images that load when viewing an email, and some of it is even sneakier, with...