Apple increases dividend by 15%, boosts capital return spending to $100B through 2015

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Comments

  • Reply 21 of 100
    jetzjetz Posts: 1,293member

    Quote:

    Originally Posted by techguy911 View Post


    Yeah, but even MSFT has a P/E of 15.  No one expects MSFT to aggressively grow anytime soon.  Apple still has potential to grow in the short term but has dropped to 9.  



     


    I get the argument.  Heck, I thought that too as I watched Apple go through $700 and crash through my position at $580.




    But here's the thing about P/E.  It's based on market sentiment about whether or not the company is going to grow or is able to generate income going forward.  The iTV rumours keep advancing by a year every year.  No new products, while Apple faces commoditization on its existing products and outright hostility to the idea of returning cash, is bound to keep investor sentiment negative towards Apple's P/E.


     


    I picked up some AAPL today, before the announcement.  I think the stock is ridiculously cheap.  But I won't lie.  I am very fearful that AAPL may well settle under $500 for years to come and I'll either have to eat my losses or wait a very long time for the $3 dividend to make up for it.

  • Reply 22 of 100
    majjomajjo Posts: 574member
    Assuming the dividend continues to grow (either through increases or buybacks), it seems like a great value buy now
  • Reply 23 of 100
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by Jetz View Post

    Investing is about money, not emotion.


     


    Then what's up with the emotional decision to screw Apple out of a couple hundred billion in market cap?



    If it's about money, why, when the money says success, is everyone whining failure?


     


    Sounds like it's the fools who sold that are "crying".






    I like Apple products. I own several.



     







    Bupkis.



     


    Ri~ght… image


     






    And I'm not one of those people who bought at $700.  Were I one of those, I'd be calling for his head on a platter.



     


    So here's your question: Why didn't you sell at $700?






    Originally Posted by majjo View Post

    By what?


     



    The "Tim Cook can't possibly do anything right ever" crowd. 

  • Reply 24 of 100
    65c81665c816 Posts: 133member
    $50bil more in stock buy back? At 939 mil outstanding shares, that's $53/share.

    Isn't this Tim Cook saying "**** you", in the most classy way possible, to Wall Street? :)

    This is style! :)
  • Reply 25 of 100
    mdriftmeyermdriftmeyer Posts: 7,503member
    Quote:
    Originally Posted by SolipsismX View Post

    Buying back $60 billion in shares. I can't wait to see how people put a negative spin on that.

     

    Stock is rebounding and all the Bears who bet on failure are crapping themselves on CNBC.

    The buy back is great news as it weakens the media's leverage on price manipulation. The future is well managed with this leadership for ten or more years to come.
  • Reply 26 of 100

    Quote:

    Originally Posted by Jetz View Post


     


    Cry all you want.  Investing is about money, not emotion.  I like Apple products. I own several.  But if I got a shareholder ballot tomorrow asking me whether Cook should be voted off, I'd vote yes in a heartbeat.  As a shareholder, I don't give a fig about Apple products.  I care about what he's done for my AAPL stock. Bupkis.


     


    And I'm not one of those people who bought at $700.  Were I one of those, I'd be calling for his head on a platter.


     


     


    My personal regret is not dumping my position at $700 and believing that this board cares about investors to try and rally the stock back.



    They could care less about YOU the shareholder. They are only appeasing you till they can by that stock you hold. Apple is a different beast. They are in it for the company longevity, you are in it for the money. You'd suck the company dry then move on. So glad apple is doing buy back.



    Here's the problem with shareholders, they don't care about the company other than return. If it fails, they'd move on to make the next one fail too. Anybody see the problem here? The shareholder. As a shareholder you do NOT know what's best for the company. You're simply selfish and in it for you're own piece. Nothing wrong with that, it's stock... but remember, shareholders getting more control is only a self fulfilling prophecy of the companies failure.

  • Reply 27 of 100
    majjomajjo Posts: 574member
    Then what's up with the emotional decision to screw Apple out of a couple hundred billion in market cap?

    I wouldn't call the drop unfounded though. We had the maps (PR) fiasco, followed by execs dumping stock, followed by execs leaving, followed by a lower profit margin. Taken together, I can see why people would be fearful, especially after a huge runup.

    If it's about money, why, when the money says success, is everyone whining failure?

    Its about how much money goes back to the shareholders.
    The "Tim Cook can't possibly do anything right ever" crowd. 

    If I remember correctly, the main issues people had with cook was that he didn't communicate enough with shareholders, and he was returning enough of the cash pile to shareholders.

    He just addressed point 2, so I think even the most diehard anti-cook has to give him props for that.
  • Reply 28 of 100
    originalgoriginalg Posts: 383member


    $60B amazing, that's a huge number. Is this local, non-foreign cash?

  • Reply 29 of 100
    lightknightlightknight Posts: 2,312member
    @jetz: please, please sell :D
  • Reply 30 of 100
    ash471ash471 Posts: 705member

    Quote:

    Originally Posted by Jetz View Post


     


    From now till 2015?


     


    So basically, they aren't reducing the cash hoarde at all.  They are just growing it slower.


     


    From an investor perspective, AAPL and MSFT are slowly starting to converge.  MSFT investors too, thought their stock would rebound.  It never did.  Instead, MSFT stabilized in a new trading range and became a blue chip dividend stock.  Real risk that this is what will happen to AAPL if there are no blockbuster new products on the horizon or the board isn't interested in returning money to shareholders.



    Microsoft doesn't have growth potential.  Apple has huge growth potential with the iPad.  The stall we are seeing in earnings growth is due to the maturing of the iPhone market.  The iPad is already poised to continue growth.

  • Reply 31 of 100
    ash471ash471 Posts: 705member

    Quote:

    Originally Posted by drewyboy View Post


    They could care less about YOU the shareholder. They are only appeasing you till they can by that stock you hold. Apple is a different beast. They are in it for the company longevity, you are in it for the money. You'd suck the company dry then move on. So glad apple is doing buy back.



    Here's the problem with shareholders, they don't care about the company other than return. If it fails, they'd move on to make the next one fail too. Anybody see the problem here? The shareholder. As a shareholder you do NOT know what's best for the company. You're simply selfish and in it for you're own piece. Nothing wrong with that, it's stock... but remember, shareholders getting more control is only a self fulfilling prophecy of the companies failure.



    Exactly, which is why Cook shouldn't be saying things like he is "frustrated" with the share price.  He should be saying, "we think Wall Street is wrong about the value of Apple."

  • Reply 32 of 100
    solipsismxsolipsismx Posts: 19,566member
    Cook said they will pay out about $10 billion in dividends per year now. Add to the $60 billion / 3 years = $20 billion per year in buybacks is $30 billion per year from their profits. That just seems crazy.
  • Reply 33 of 100
    jetzjetz Posts: 1,293member

    Quote:

    Originally Posted by drewyboy View Post


    They could care less about YOU the shareholder. They are only appeasing you till they can by that stock you hold. Apple is a different beast. They are in it for the company longevity, you are in it for the money. You'd suck the company dry then move on. So glad apple is doing buy back.



    Here's the problem with shareholders, they don't care about the company other than return. If it fails, they'd move on to make the next one fail too. Anybody see the problem here? The shareholder. As a shareholder you do NOT know what's best for the company. You're simply selfish and in it for you're own piece. Nothing wrong with that, it's stock... but remember, shareholders getting more control is only a self fulfilling prophecy of the companies failure.



     


    Umm. Does anybody invest for any other reason? Last I checked my personal chequing account was not a charity. Moreover, if this is going to be the mentality, why even bother investing?  Keep in mind that Apple wouldn't exist today if investors all over hadn't provided the capital to grow that company. 


     


    And you are fundamentally misreading the situation. It's in my best interest that Apple does well. Because my stock will do well. And I will be rewarded for sticking with the stock. However, I most certainly do care about my investment. And that I judge on return, which thus far has been negative on the whole (excepting the little bump I got on what I bough pre-announcement today).


     


    I would never want to "bleed the company dry".  I don't know where fanboys get this crap.  As an investor I want Apple well capitalized.  But I want them to give me back the dough if they have no intention or ability to use it.  And I want them to communicate with me (as one of their many part-owners) about their intentions.  If they said they needed a $100 billion for acquisitions, I'd more than support them on it.  But if there's been no explanation as the hoarde grows.  And that's what is frustrating.


     


    Now for all your rant.  Tell us.  Are you in high school or are you an adult who has a mortgage, has a retirement savings account and investment accounts, etc,.?  Since you're such an Apple fanboy that you don't think investors matter, how would you feel about just signing over tens of thousands with zero concern about return?  Surely, you would, since you're apparently a much better person than I am.  Just walk over to any Apple store and hand them the cheque.  Let me know where you live.  I'll come over and drive you to the store myself.  Least I can do to help someone so charitable.

  • Reply 34 of 100
    jetzjetz Posts: 1,293member

    Quote:

    Originally Posted by majjo View Post



    If I remember correctly, the main issues people had with cook was that he didn't communicate enough with shareholders, and he was returning enough of the cash pile to shareholders.



    He just addressed point 2, so I think even the most diehard anti-cook has to give him props for that.


     


    50/50 on this.  I am glad he did something.  Would have liked to have seen more.  But this is a good start.  And he's gotta have some margin to boost the buyback in coming years as well.

  • Reply 35 of 100
    pedromartinspedromartins Posts: 1,333member

    Quote:

    Originally Posted by Jetz View Post


     


    Umm. Does anybody invest for any other reason? Last I checked my personal chequing account was not a charity. Moreover, if this is going to be the mentality, why even bother investing?  Keep in mind that Apple wouldn't exist today if investors all over hadn't provided the capital to grow that company. 


     


    And you are fundamentally misreading the situation. It's in my best interest that Apple does well. Because my stock will do well. And I will be rewarded for sticking with the stock. However, I most certainly do care about my investment. And that I judge on return, which thus far has been negative on the whole (excepting the little bump I got on what I bough pre-announcement today).


     


    I would never want to "bleed the company dry".  I don't know where fanboys get this crap.  As an investor I want Apple well capitalized.  But I want them to give me back the dough if they have no intention or ability to use it.  And I want them to communicate with me (as one of their many part-owners) about their intentions.  If they said they needed a $100 billion for acquisitions, I'd more than support them on it.  But if there's been no explanation as the hoarde grows.  And that's what is frustrating.


     


    Now for all your rant.  Tell us.  Are you in high school or are you an adult who has a mortgage, has a retirement savings account and investment accounts, etc,.?  Since you're such an Apple fanboy that you don't think investors matter, how would you feel about just signing over tens of thousands with zero concern about return?  Surely, you would, since you're apparently a much better person than I am.  Just walk over to any Apple store and hand them the cheque.  Let me know where you live.  I'll come over and drive you to the store myself.  Least I can do to help someone so charitable.



    One has nothing to do with the other.


     


    One is based on innovation/hard work, the other is based on speculation/rumours/FUD/BS.

  • Reply 36 of 100
    jetzjetz Posts: 1,293member

    Quote:

    Originally Posted by SolipsismX View Post



    Cook said they will pay out about $10 billion in dividends per year now. Add to the $60 billion / 3 years = $20 billion per year in buybacks is $30 billion per year from their profits. That just seems crazy.


     


    Hardly.  The company makes $50 billion a year in profits and has $180 billion in the bank.  Personally, I'd rather they scrap the dividend and go all out on the buybacks.  That might well do more for the stock.

  • Reply 37 of 100
    gazoobeegazoobee Posts: 3,754member

    Quote:

    Originally Posted by SolipsismX View Post



    Buying back $60 billion in shares. I can't wait to see how people put a negative spin on that.


     


    Check posts by "jetz."  He's some kind of wall street weenie (or wannabe), that has a negative spin for almost every occasion.  :)

  • Reply 38 of 100
    ash471ash471 Posts: 705member

    Quote:

    Originally Posted by techguy911 View Post


    Yeah, but even MSFT has a P/E of 15.  No one expects MSFT to aggressively grow anytime soon.  Apple still has potential to grow in the short term but has dropped to 9.  



    MSFT has a higher P/E because it is a software company, not a hardware company (Wall Street doesn't count the 10 units of Zunes and tablets MS has sold).  You're comparing apples to oranges.  


    I do think Apple is undervalued.  Their hardware business is supported by a healthy dose of software.  The Apple ecosystem is much "stickier" than say RIM's business.  Also, Apple does make/sell a fair amount of software/content (iTunes, app store, music, movies, iOS, final cut, pages, etc.)

  • Reply 39 of 100
    jetzjetz Posts: 1,293member

    Quote:

    Originally Posted by lightknight View Post



    @jetz: please, please sell image


     


    Definitely considering it.  My TSLA position is up 50% and I only bought in last year.  And they seem to be poised for growth.


     


    Look, at the end of the day, I'm also frustrated as an investor with the market because AAPL should be doing a lot better when you look at the fundamentals.  It's a cash printing machine.  But for several reasons the stock has been hammered far more than should it be (though some of it most certainly the fault of the Board....cash printing machine is no good if the cash being printed isn't reaching owners of the machine).

  • Reply 40 of 100
    paul94544paul94544 Posts: 1,027member


    "a lot more surprises in the works."

     


    I flipping hope so! what a lame comment from CEO


     


    Should see a okay $50  bump up as a result of buy back  though I suspect those who bought in at 395 will take profits to negate most of that and stock will be range bound rest of year. I don't think the stock will do much for 6 months because of narrowing margins until new products come out in fall and I don't mean re-treads of iPad/iPhone.  I mean real "new" products. Margins might go up a tad because iPhone5 and iPadmini are more efficiently manufactured going forwards  but not enought to make diff in share price. A lot will depend on how compertors fair with their Android Devices and phones this summer. Also a big question mark is how Windows RT does as year rolls on. Looking good (RT/ Windows8.0 is a flop) so far but never underestimate MS and the momentum of Office and Windows 8.1. I will be basing my weight in Apple on all these factors along with ARM and GOOG, INTC

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