Tuesday, November 15, 2011

Tuesday Apple Rumors — Apple Dividend Under Cook?

Here are your Apple rumors and AAPL stock news items for Tuesday: Apple
Dividend Could Bring in $4 Billion in New Investment: Apple has caught no small
amount of flack over the years for not paying a dividend, but now that Tim Cook
is steering the good ship out of Cupertino, Calif., that policy might change.
International Strategy & Investment Group analyst Brian Marshall believes the
company will begin paying out a dividend in 2012 as part of a wider plan to
maximize the efficiency of the companys capital structure. An Apple Insider
report said the analysts thinks Apple can easily pay a dividend of around $2.40
per quarter , or a roughly 2.5% yield on current AAPL stock prices. That would
tie up some of Apples free cash flow by as much as 25%, but Marshall also
believes yielding such a dividend could bring in $4 billion in new investments.
With more than $76 billion in cash stockpiled, Wall Street has been calling for
Apple to begin paying out a dividend or initiate an AAPL stock buyback for
months. As of now, though, with the Apple machine generating consistent and
impressive growth, investors shouldnt count on broad changes to the companys
business operations. Android Still On Top, Apple Still Making More Money in
Smartphones: Research company Gartner released its report Tuesday on the global
smartphone market for the third quarter of 2011. According to a report at Mac
Rumors detailing the firms findings, Apples share of the market shrank, but its
still running off with the greatest profits. By platform and not manufacturer,
Google s (NASDAQ: GOOG ) Android led the market with 52.5% of phones sold over
the third quarter running that operating system. Nokia s (NYSE: NOK ) Symbian
came in second with 16.9%, down from 36.3% during the same period in 2010. Apple
took a 15% share, down from 16.6% in 2010. As a study from the Oppenheimer firm
found, though, Apples iPhone accounts for 65% of total smartphone profits .
Netflix Making New iPad App: Sure, users and investors still are angry at
Netflix (NASDAQ: NFLX ). The company is at least making amends with iPad users,
though. A Tuesday report at 9 to 5 Mac quoting a Netflix blog post said that the
streaming video company will deliver a new version of its app for Apples tablet
with a much more immersive design sometime in the next few weeks. Part of the
impetus for the redesign is to cater to new tablet users not just on the iPad,
but on Amazon s (NASDAQ: AMZN ) Kindle Fire and Barnes & Noble s (NYSE: BKS )
new Nook Tablet. As of this writing, Anthony John Agnello did not own a position
in any of the aforementioned stocks. Follow him on Twitter at

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