Apple (AAPL) Momentum Might Slow on Buyback Announcement...
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Price: $433.26 -0.3%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
Revenue Growth %: +11.2%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
Revenue Growth %: +11.2%
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With Apple (Nasdaq: AAPL) expected to announce a dividend/stock buyback Monday there is fear that such a move could be a momentum killer.
According top recent data, Google (Nasdaq: GOOG) has about $44 billion to $46 billion in cash and equivalents. Google is also somewhat of a cash machine, generating about $3.5 billion from operating activities as of the most recent quarter. Yet, Google doesn't pay a dividend to its investors, opting for stock buybacks instead.
Here's the thing: Google implemented its first stock buyback plan in November 2009...when shares were at $590 or so. Since starting the plan, Google share appreciation all but came to a halt, with the stock moving about 7 percent to 10 percent since the announcement. Shares have been relatively flat since the start of 2012 and moved only about 9 percent higher through 2011.
So, with Apple surging about 50 percent in 2012 to-date, will the spectacular run be over if a buyback is announced?
Shares of Apple are over 3 percent better Monday morning.
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According top recent data, Google (Nasdaq: GOOG) has about $44 billion to $46 billion in cash and equivalents. Google is also somewhat of a cash machine, generating about $3.5 billion from operating activities as of the most recent quarter. Yet, Google doesn't pay a dividend to its investors, opting for stock buybacks instead.
Here's the thing: Google implemented its first stock buyback plan in November 2009...when shares were at $590 or so. Since starting the plan, Google share appreciation all but came to a halt, with the stock moving about 7 percent to 10 percent since the announcement. Shares have been relatively flat since the start of 2012 and moved only about 9 percent higher through 2011.
So, with Apple surging about 50 percent in 2012 to-date, will the spectacular run be over if a buyback is announced?
Shares of Apple are over 3 percent better Monday morning.
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