I posted on dividends and buyback.
If I were the CEO of Apple, I'll give a 3% dividend. There is a high premium on dividend stocks. It could boost the stock price by 5%, which is 5% extra from the stock options. Why not? They should not be as silly as they look.
3% is not large percent of the payout ratio. If they feel the stock price is under valued, they can just borrow money to buy back stocks at the lowest interest rate in recent history. Same for new acquisitions.
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(c) TonyP4 2012. Written in 1/24/12. Last updated in 1/24/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
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