AAPL Approaches $500 Per Share as Apple Considers Paying Dividend

On Friday, there was no shortage of selling on Wall Street as the recent rally in equities resulted in significant profit taking among traders and investors. But while major indices like the Dow Jones Industrial Average, S&P 500, and NASDAQ are all deep in red territory, there are a few stocks that continue to climb. …   Read More

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On Friday, there was no shortage of selling on Wall Street as the recent rally in equities resulted in significant profit taking among traders and investors.

But while major indices like the Dow Jones Industrial Average, S&P 500, and NASDAQ are all deep in red territory, there are a few stocks that continue to climb. And AAPL is one of them.

Shares of Apple, presently trading around $496, are rapidly approaching the psychologically satisfying $500 level.

Even at $500, however, AAPL could still climb dramatically according to leading market watchers who continue to maintain price targets of between $600 and $650 for AAPL.

As a result of Apple’s surge on Wall Street during the last six months, some believe the company will soon pay a dividend to investors. Analyst Shaw Wu with Sterne Agee believes a yield in the 2 percent to 3 percent range would be ideal to satisfy and further entice shareholders and employees. “The reason is that the company’s strong cash flow should be able to fund this (which we estimate could be $75-$80 billion in the next four quarters vs. the $45.3 billion we estimate the company generated in the last four quarters).”

In Apple’s quarterly earnings report last month, executives admitted that they are “actively discussing” options for the $96.7 billion in cash Apple is sitting on.

“We’re actively discussing uses of our cash balance, and have no specifics to share,” Apple CFO Peter Oppenheimer said. “In the meantime, we continue to be disciplined with cash, and are not letting it burn a hole in our pockets.”

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5 comments

  1. AAPL Approaches $500 Per Share as Apple Considers Paying … | Mobile Marketing Online

    […] Street as the recent rally in equities resulted in significant profit taking among traders and. mobile marketing – Google Blog Search This entry was posted in Sms Marketing and tagged $500, AAPL, Apple, Approaches, Considers, […]

  2. Guest

    Note that the preponderance of that cash is held overseas. It's not coming back into the US (in the form of dividends or otherwise) without a tax repatriation holiday. In other words, it's never coming back into the US.

  3. Guest

    +1. How long have I been hearing this same news story recycled over and over?

  4. Guest

    They've been "actively discussing" paying a dividend for years. This is not news.

    1. EdKent

      This time the "active discussion" is serious. Large institutions are saying they'll be on board to buy the dividend giving stock if the announcement is given later this month. It's a win/win for investors and the corporation if they announce a dividend and/or stock split this year. Plus, it will put cash into the pockets of many who want to invest in their favorite Presidential candidate from either party. This is the year and the Apple planets have aligned.

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