At best, I think an increase in the dividend to $13-$15/yr is more likely. And I see no reason to split the stock. Other than the psychological effect, it means nothing to split (or reverse split) a stock. I would welcome a dividend increase to that level and I suspect many other investors would too. But we'll see in a few days/weeks.
At best, I think an increase in the dividend to $13-$15/yr is more likely. And I see no reason to split the stock. Other than the psychological effect, it means nothing to split (or reverse split) a stock. I would welcome a dividend increase to that level and I suspect many other investors would too. But we'll see in a few days/weeks.
Splitting the stock would:
1. Make Apple a candidate to add to the DOW
2. Allow more people to own it
3. Make it easier for poor people to buy option contracts (may or may not be a good thing)
Splitting the stock, increasing the dividend, and buying back 1/2 the outstanding share may seem like a futile exercise or counterproductive activity, but it's not. It would be hugely profitable for everyday investors and allow more people to buy the stock and receive real return on their investment. AAPL is an extraordinary growth AND value play. Owning a company, by definition means owning a share of products being sold and particilpating in expenses, revenues, and profits. AAPLs integrated platform is a thing of beauty and good for at least another decade while it is integrated into vehicles and also takes over the living room/residence. $137B in cash as soon to be $150B. Using a significant chunk of that $$$ to buy back shares would increase the value of the corporation and increase earnings per share. A 4-1 stock split while maintaining the current dividend payout and buying back shares would once again squash the inferior competitors. Gone are the days of needing to be an IT expertise just to get the most out of your software (MSFT) or platforms based on linux. True, AAPL is based on linux, but the best analogy I ever heard was that Linux is an army tank, MSFT is a station wagon, and AAPL is a porsche (personally I compare them more to BMW in terms of performance and understated elegance).
A split would make the options less expensive? I don't think so. AAPL's options are always going to be expensive and I get taken to the cleaners on them frequently. However, the risk verses reward, at least to me, is that it's less risky to buy the options that it is to buy outright right now in terms of ROI. That would change drastically should AAPL execute something like I mentioned above and it would tell all investors that AAPL values them greatly.
Comments
At best, I think an increase in the dividend to $13-$15/yr is more likely. And I see no reason to split the stock. Other than the psychological effect, it means nothing to split (or reverse split) a stock. I would welcome a dividend increase to that level and I suspect many other investors would too. But we'll see in a few days/weeks.
Quote:
Originally Posted by Jag_Warrior
At best, I think an increase in the dividend to $13-$15/yr is more likely. And I see no reason to split the stock. Other than the psychological effect, it means nothing to split (or reverse split) a stock. I would welcome a dividend increase to that level and I suspect many other investors would too. But we'll see in a few days/weeks.
Splitting the stock would:
1. Make Apple a candidate to add to the DOW
2. Allow more people to own it
3. Make it easier for poor people to buy option contracts (may or may not be a good thing)
Splitting the stock, increasing the dividend, and buying back 1/2 the outstanding share may seem like a futile exercise or counterproductive activity, but it's not. It would be hugely profitable for everyday investors and allow more people to buy the stock and receive real return on their investment. AAPL is an extraordinary growth AND value play. Owning a company, by definition means owning a share of products being sold and particilpating in expenses, revenues, and profits. AAPLs integrated platform is a thing of beauty and good for at least another decade while it is integrated into vehicles and also takes over the living room/residence. $137B in cash as soon to be $150B. Using a significant chunk of that $$$ to buy back shares would increase the value of the corporation and increase earnings per share. A 4-1 stock split while maintaining the current dividend payout and buying back shares would once again squash the inferior competitors. Gone are the days of needing to be an IT expertise just to get the most out of your software (MSFT) or platforms based on linux. True, AAPL is based on linux, but the best analogy I ever heard was that Linux is an army tank, MSFT is a station wagon, and AAPL is a porsche (personally I compare them more to BMW in terms of performance and understated elegance).
A split would make the options less expensive? I don't think so. AAPL's options are always going to be expensive and I get taken to the cleaners on them frequently. However, the risk verses reward, at least to me, is that it's less risky to buy the options that it is to buy outright right now in terms of ROI. That would change drastically should AAPL execute something like I mentioned above and it would tell all investors that AAPL values them greatly.