Re:Apple Q4 Results
by 1123581321 on Wednesday October 30, 2019 @04:59PM
(#21402649)
The advantage has been explained well by the sibling comments. They are not promising such a big dividend that they can’t invest cash into increased operations and R&D.
A company that is primarily valued for its dividend is one that has promised such a big dividend that it risks cutting the dividend when it has to grow or fix problems (like GE.) Maestri is not going to let that happen, which is why they are approaching net cash zero carefully over time and majorly using buybacks, which do not set the same expectation for investors as dividends.
A company that is primarily valued for its dividend is one that has promised such a big dividend that it risks cutting the dividend when it has to grow or fix problems (like GE.) Maestri is not going to let that happen, which is why they are approaching net cash zero carefully over time and majorly using buybacks, which do not set the same expectation for investors as dividends.