Dividend seen bringing $4B in additional investments to Apple


Analyst Brian Marshall with International Strategy & Investment Group claims that apple may finally pay its shareholders dividends, despite the company’s long resistance. Most investors do not believe Apple will initiate a dividend policy in 2012, but if the company will, it may gain an additional $4 billion in investments.

At the moment the current Apple’s CEO Tim Cook is reorganizing the company, so he may probably make an effort to optimize capital structure and start paying dividends Apple’s shareholders. Brian Marshall believes that Apple could "easily" implement a dividend yield of 250 base points, amounting to about $2.40 per quarter.

Apple’s previous CEO, Steve Jobs, didn’t support the idea of dividend distribution and preferred to invest in strategic opportunities such as last year purchase of Siri (Apple paid about $200 million).

"We strongly believe one or more strategic opportunities will come along we're in a unique position to take advantage of," the late Apple CEO said in 2010. "We don't let the cash burn a hole in the pocket or make stupid acquisitions. We'd like to continue to keep our powder dry because we think there are one or more strategic opportunities in the future."

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Written by Svetlana Osipova

Wednesday, November 16, 2011. 17:09

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