Portico Principal Appears on KTVU Channel 2 News

March 22nd, 2012
by Portico Wealth Advisors

Following the declaration of Apple’s (AAPL) historic dividend on Monday, Portico principal, Jonathan Leidy, was interviewed by KTVU Channel 2’s Nicole Walker. Jonathan provided his opinion as to what the newly announced dividend might portend for AAPL shareholders, both now and in the future.

To view Jonathan’s appearance, follow this link:  http://www.ktvu.com/videos/news/palo-alto-apple-dividend-payout-signals-major/vGbj3/

Apple is currently sitting on ~$100B in cash and liquid investments, representing ~20% of the company’s total value.  Institutional investors, e.g. mutual funds, hedge funds, pensions, etc., have put increasing pressure on the tech giant to pay a dividend or “share the wealth.”  However, issuing a dividend also suggests that Apple’s pipeline of new products and innovations may be waning to some degree.  And with a share price that already makes AAPL the largest company in country, it seems reasonable to question how much further it can run.

Apple’s board of directors also approved up to a $10B buyback of shares over the next 3 years.