TheStreet asked readers whether Apple made the right decision in announcing a dividend and buyback. Here are their responses.
NEW YORK (TheStreet) -- After Apple's(:AAPL) dividend announcement, there was some concern over whether Apple had made the right decision, but by-in-large, most market watchers believe it was the correct choice.
TheStreet asked readers to give their thoughts on the subject.
Here is what they had to say:
"Long overdue. the money is just lying there gathering dust. They clearly have no major Acquisitions in mind -- and I don't blame them for that. They generate free cash flow every year in quantities large enough to finance any investments/growth strategies they may wish/need to make. Any cash hoard above $25 billion is clearly excessive , Besides dividends, a regular share buyback is also useful," one reader commented.
"Steve Jobs knew he was dying & he and the top brass mapped out the future for Apple as an innovative products leader for many years to come. They are paying attention to their money AND their products. Hence, they will release Apple TV etc. whenever the time is right for the them and the industry. Jobs & his team mapped out the future strategies for AAPL as well far in advance of his death. Jobs may be gone but his plans live on. It's a very good thing to share part of the immense cash bounty Apple has amassed. Good for investors present and future also. Very good PR," another said.
One reader went so far as to say, it was a "great decision by Apple. makes the stock even MORE desirable!" Many opined that even former CEO Steve Jobs would have returned cash to shareholders, as he never had close to $100 billion to work with.
Despite the overall sentiment being more positive than negative, there were more than a few who believed that Apple should have left the cash position alone, and that this decision may be seen as a sign of innovation slowing down.
"It took how many months after Steve Jobs death to break into the cookie jar? If they're paying attention to their money, they've probably already lost focus on their products. It's a good thing there's a long way to fall from here," one reader wrote.
The reaction on Twitter, however, was split evenly between positive and negative.
Twelve readers tweeted back their opinions, with one saying, "it is hard to replace your Beethoven or Bach. I think new products in the can may be just about empty. One went so far as to say Apple should have spent the cash to create jobs in the United States. Another said, "Yes, its amazing how they did just enough and not too much. Perfect middle ground."
Apple announced it would spend $10 billion on a share-repurchase program and initiate a quarterly dividend of $2.65 per share. The Cupertino, Calif.-based company said it expects to spend $45 billion on these efforts over the next three years.
Shares of Apple are lower in Tuesday's trading, off 0.78% to $596.34.
Interested in more on Apple? See TheStreet Ratings' report card for this stock.
Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.
--Written by Chris Ciaccia in New York
>To follow the writer on Twitter, go to http://twitter.com/commodity_bull.
>To submit a news tip, send an email to: email@example.com