AAPL Dividend
Thank you for another great issue of ATPM. I enjoy reading every issue even when it only seems to talk about the iPhone.
But I have a question that I hope you can answer. I’ve never understood the talk about Apple and its stock. Your latest issue mentions “the company expects earnings for the 14-week period in excess of $11 per share.” I happen to own some Apple stock, and I know there is only one type of stock available from them, and Apple has never paid a dividend on their stock, so how and why is this $11 per share figure valid, and why is it stated at all? The stock rises and the stock falls, but there are no dividends. Maybe this is a subject you could consider talking a little about in a future issue. Thank you and keep up the great work.
—Claude Nolan
As you point out, Apple does not currently pay a quarterly dividend. Although there is much speculation that the company will return to a regular dividend program in 2012 or 2013, the last regular dividend paid by Apple was in late 1995 and prior to the return of Steve Jobs to the company.
At present, the only way for Apple to increase shareholder wealth, since a dividend in not paid, is through share price appreciation. Although many factors including overall market conditions impact the share price, earnings and earnings growth are the primary catalysts for share price appreciation. Earnings growth and the rate of earnings growth are important for current Apple shareholders and prospective shareholders evaluating the stock.
According to Yahoo! Finance, the current Wall Street 1-year price target is $505.96 against a closing price today of $411.23. In contrast, my current 12-month target price, published in late October, is $640 based on expectations of earnings per share growth of 66%.
Because Apple’s earnings per share performance drives Wall Street price targets, it’s important to mention when discussing the company’s continuing success. I like the idea of covering the topic in a more comprehensive way in a future issue of ATPM, and I will discuss that with Michael and the editors. Please let me know if this response adequately addresses your question or if more information is desired.
—Robert Paul Leitao
• • •
Thank you for your response to my e-mail. Your e-mail does answer my biggest question. Thank you.
I’ve had a few thoughts about Apple stock that you might also expand on should you decide to cover the Apple stock topic in the future. Why hasn’t Apple split their stock again? As much as I enjoy and benefit from the price increase, it seems to me that it would do even better if it were starting from a lower base price. Wouldn’t it make sense that more people could and would invest in Apple stock if the price were more reasonable? Do you think that Apple might be thinking of buying back some of the outstanding shares with some of the huge cash reserves they have built up? Would that even make sense? I wasn’t aware that Apple had paid any dividends. I purchased my shares either in 1995 or 96 and have seen it split twice. Must have been ’96 since I never received any dividends. I hope that Michael and the editors agree that an article on the financial side of Apple is a worthy subject for ATPM and would look forward to reading it.
Thank you again for your response and your consideration of my suggestions.
—Claude Nolan
I’m working on an article covering the topics that you asked about for a future issue of ATPM.
—Robert Paul Leitao
MacMuser: It’s Got No Blinking Light
Sometimes I wonder how to find out if my iMac is really sleeping or just has the display turned off…
—Ulf
Apple’s Ghost of Christmas Yet to Come
Steve Jobs was widely credited with being the spirit and driving force behind innovation at Apple. He is now gone. How likely is it that the team he left behind can continue the rapid and successful pace of innovation seen in the past decade? If one looks around the technology landscape, Apple has been rather unique in doing so under Jobs.
—Warren Shaw
The brilliance of Steve Jobs extended to the talent he selected to lead the company. Tim Cook, for example, is an extraordinarily talented and hardworking individual who has an impressive command of and knowledge about all things Apple.
I expect strong results from Apple over the next few years as the company’s global market expansion continues unabated.
—Robert Paul Leitao
How Did This Happen?
Your upgrade story reminds me of one with a Windows box a couple of years ago. I had a dual-processor motherboard gathering dust in my closet and wanted a decent (not top-shelf) Windows box for some light gaming and other work-related tasks.
After six weeks and too much cash, I dropped the project, sold off all the accumulated parts, and bought a small mid-tower HP cheap. It required replacement of the power supply to power the graphics adapter, but that was easily done.
The frustration factor was significant on this project, and I doubt I’ll attempt it again…even with all of my experience building and maintaining Linux boxen.
Good story…
—Dave Thompson
Easter Island Desktop Pictures
I’ve got a Canon EOS Rebel t1i I got second hand. I will be taking it to Thailand and shooting some new photos next month. ATPM was kind enough to publish my first photos of the LOS (Land of Smiles) a few years back. The camera adapter for my iPad lets me preview my photos before I send them home to my Mac Pro desktop. Awesome pictures of Easter Island!
—Grover Watson
Adobe Persuasion
Persuasion crushed PowerPoint in ease of use both in development and presentation. Why did Adobe abandon such a great tool?
—Pete Fanarkiss
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