Report: Apple Could Pay Dividend in 2012

The big elephant in the room for investors is…. when will Apple ($AAPL) finally start paying a dividend?

Not too many companies acquire $98B in cash without paying a single penny back to their shareholdersn, but Apple is definitely one of them.

I actually reported on this topic in June, recommending that Apple could disburse a regular dividend back to their shareholders and have plenty left over to fund future growth projects.

Today, Apple is trading at a gargantuan market cap of 508.93B and they haven’t made any big acquisitions with their cash balance… still no dividend.

Well, the good news is that it looks like this drama will finally come to an end at some point during 2012.  According to a recent report from Bloomberg News, Apple is likely to declare a $2 dividend/share per quarter before the year is over.

I think this is an excellent move and it should help appease investors who say that Apple is hoarding too much cash.  When companies acquire huge cash balances in the tens of billions, they need to either invest the cash in acquisitions or return it back to shareholders.

It looks like Apple is finally coming to their senses on the hot-button dividend topic, which is a positive development for their shareholders.

The market is clearly responding to this news, as Apple shares are up 1.75% intraday.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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