Steve would have paid a dividend. He wouldn't have had a choice. In terms of shareholder value, Apple's cash hoard was being a drag. Apple was probably earning less than 1% on their cash hoard. If Apple paid a dividend, a shareholder could buy stock in another company and generate a much greater return on it.
There's also the issue of share creep. A lot of people at Apple have received options grants. When they exercise these options, those are new shares on the market. That will reduce the share price due to share creep. By doing a stock buyback, Apple can combat share creep.
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Yep. And that's why quite a few posters have said that you sound like a Google shill.
Yes, they are. They have. Move along.
Steve would have paid a dividend. He wouldn't have had a choice. In terms of shareholder value, Apple's cash hoard was being a drag. Apple was probably earning less than 1% on their cash hoard. If Apple paid a dividend, a shareholder could buy stock in another company and generate a much greater return on it.
There's also the issue of share creep. A lot of people at Apple have received options grants. When they exercise these options, those are new shares on the market. That will reduce the share price due to share creep. By doing a stock buyback, Apple can combat share creep.