Apple’s Jobs Prefers Having Cash to Paying Dividends

[DainBramaged]

Chief Executive Officer Steve Jobs said he prefers holding on to the company’s cash hoard for potential acquisitions and “bold” investments, rather than paying dividends or doing stock buybacks.

“We know if we need to acquire something -- a piece of the puzzle to make something big and bold -- we can write a check for it and not borrow a lot of money and put our whole company at risk,” Jobs said today at Apple’s shareholder meeting. “The cash in the bank gives us tremendous security and flexibility.”

Apple, maker of the iPhone, iPod and Macintosh computer, had about $25 billion in cash and short-term investments as of December. Over the past few years, the company has made small acquisitions to expand in such businesses as mobile-phone ads and wireless music services. It’s also invested in new products, including the iPad media tablet due in March.

While the company may benefit from other acquisitions, possibly in the chip industry, Apple should also consider rewarding shareholders with a buyback or dividend, said Sam Wilson, an analyst at JMP Securities LLC in San Francisco. Apple hasn’t paid a dividend since 1995.

“Ninety-eight percent of all tech companies should pay a dividend,” Wilson said. He has a “market outperform” rating on the stock, which he doesn’t own. “If they don’t have a productive use for the cash, before they pay a dividend they should start a share-buyback program.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=aYa4vVrxAcBs&pos=6

[FreeState]

1. As a share holder I think hes right - I dont need dividends I need growth n/t

[DainBramaged]

2. $25 billion. What happens when he dies?

[RB TexLa]

3. He gets buried or burned or whatever he's decided. The company goes on.

[endless october]

4. how about making the shit here in the states?

Apple products sure cost enough to make them here. seeing a China label on an Apple product is confusing.

[DainBramaged]

7. When it comes to DU, your request falls on deaf ears/eyes...

most here don't give a shit, they got theirs and want some of yours. Fuck Made in America, fuck American jobs.....

Nothing pisses me off more than the attitude here, nothing.

[Touchdown]

11. Oh' but the Profits come back to America!

You don't want to buy from a foreign company like... say Nissan, with a Tennessee factory because THE PROFITS go overseas!:crazy:

[REP]

5. All I know is I love listening to my iPod in my Nissan

Joke, of course; 2008 Zs don't have an iPod input.

I don't give a shit about dividends, though - I'm happy with the performance of the stock.

[ThomWV]

6. Dividends are an outward sign of lack of imagination by management

If they can not think of a way to reinvest profits rather than pay them out then they aren't much of a management team.

[DainBramaged]

8. Again, 25 BILLION in cash, and what happens when he dies?

[Dreamer Tatum]

9. Change "Apple" to "Goldman Sachs" or "JPM Chase," and I think there'd be more replies

Simply amazing the pass Apple gets. Apple could ship iPods in boxes full of shit and I think people would gladly eat it just to get to their shiny toy.

The iPad is all the evidence any shareholder needs that excess profits should be paid to them.

[Tesha]

10. You say that now, but in three or four years, you'll probably be telling us...

...how you predicted its great success, if only because the masses of
consumers are so dumb.

I'm a perfectly-happy Apple shareholder and would prefer that
Apple never take *YOUR* advice.

Tesha

[Touchdown]

12. Another drive by Apple hater who buys other chinese made computers

... and still bashes Apple for doing it.

"What happens when he dies?" ... What a profound question.:rofl:

[Elwood P Dowd]

13. For all the DU Apple haters.

Apple leaves US Chamber Of Commerce because of their global warming stance.

http://www.washingtonpost.com/wp-dyn/content/article/2009/10/05/AR2009100502744.html

Apple supports gay's right to marry.

http://news.cnet.com/8301-13579_3-10074793-37.html

Free Republic and Apple.

http://www.freerepublic.com/focus/f-chat/1860172/posts

Rush Limbaugh on Apple

"As for Steve Jobs, I don't know that he would accept the invitation to do an interview. Apple is a very political company, and they're very liberal minded. Gore is on their board, of course, obviously." Rush Limbaugh