Since the passing of Jobs, I've come across a couple of (negative) commentaries regarding Apple's decision to not payout a divident.
The way I see it is you buy Apple for capital appreciation, not for a dividend. If you want a dividend go buy another stock.
Freedom of the market, no? No one is forcing you to buy Apple.
Their decision (and practices for that matter) to do so is inconsequential. Apple is under no obligation - unless pressured by stockholders; and even then... - to pay out a dividend. The investor has to decide for themselves if it's worth it.
For now, and the foreseable future, Apple will likely continue to grow.
Sorry, Commentator, but in the long run, Apple without Steve Jobs is finished. I don't see a bright future for that company.
ReplyDeleteI'd probably play Apple as a short term play; if you have the cash of course. If it moves from $330 to, ay,$400-$450 as some suggest it's not a bad return provided in does it inside three years. Beyond that, maybe you're right. There are other option. From what I read, Jobs was lousy at passing the torch so that could indeed hurt the company in the long run and Apple would once again exist in obscurity; if at all.
ReplyDeleteThen again, $80 billion is a lot of cash to burn through.