Reply #31: Couple points. [View All]

One if you don't sell your shares then you both are both current shareholders AND future shareholders. Apple believes (maybe right, maybe wrong) that they create MORE shareholder value by using cash to expand (and buy potential competitors) than giving it back in cash dividend right now. If you agree with that strategy then you should invest in Apple, if you don't then you shouldn't. If you are uncertain then maybe a mix of both growth stocks and dividend stocks is better play.

Two if you think Apple will fall due to arrogance or poor leadership then likely it isn't a good investment with or or without a dividend.


There are plenty of large, profitable companies paying nice dividends. If you like dividends then stick with them. As far as Apple ultimate cashflow. Eventually if Apple growth rate (and thus cashflow spent on expansion) slows there will be demands from large shareholders to issue a dividend. If Apple doesn't comply many of them will dump Apple and that will hurt stock price. I can't name a single large ($5 bil+) slow growing (<15%) company that is accumulating massive cash (positive cashflow over say last 2 years) that doesn't have a dividend. Nobody would invest in a company like that. As company growth rate slows they need the dividend to support high share price.