Max Levchin: Apple Stock Dividend Plans
on Thursday, March 22, 2012Entrepreneur and investor Max Levchin appears heartbroken that Apple doesn’t plan to build a costly product with it’s excess cash – instead they plan a stock buyback and plan to pay dividends to stock holders.
“Saddened by Apple’s plan for a huge dividend. Apparently, they have nothing truly capital-intensive in the product pipeline” — Max Levchin
The quote “Saddened by Apple’s plan for a huge dividend. Apparently, they have nothing truly capital-intensive in the product pipeline” by Max Levchin is expressing disappointment in Apple’s decision to pay out a large portion of its profits to shareholders as dividends rather than investing more aggressively in research and development.
Levchin seems to be implying that if Apple had truly innovative new products in the works that required substantial funding to develop, it would make more sense to retain those earnings to fuel further innovation over the long run.
But since their “product pipeline” apparently lacks such capital-intensive projects, Apple appears content to reward investors financially through dividends rather than pouring resources into ambitious new technologies or initiatives according to Levchin’s view.
The quote suggests Apple may be prioritizing short-term returns over long-term growth and industry leadership through daring new products.
Saddened by Apple's plan for a huge dividend. Apparently, they have nothing truly capital-intensive in the product pipeline.
— Max Levchin (@mlevchin) March 19, 2012