While some of Wall Street analysts say that Apple should pay dividends to shareholders with the amount of cash the company reserves, it doesn’t look like Steve Jobs, Apple’s CEO, will listen. In an open letter to Apple’s board of directors issued Thursday by Bernstein Research’s Toni Sacconaghi, the analyst said that his clients asking why Apple doesn’t pay dividends and what Apple is planning to do with the cash. ”In our conversations with shareholders, one common source of frustration — which is now bordering on exasperation — has been Apple’s burgeoning cash balance and the company’s unwillingness to return it to shareholders or discuss its vision for how the company plans to use it,” Sacconaghi wrote to the letter. Jobs has already answered the question back in February when he was asked about it. “We know if we need to acquire something — a piece of the puzzle to make something big and bold — we can write a check for it and not borrow a lot of money and put our whole company at risk. The cash in the bank gives us tremendous security and flexibility,” Jobs said.
Apple holdings in cash and marketable securities have grown from $24.5 billion to $46 billion — highest among all U.S. listed companies, and greater than the total market capitalization of all but 49 of the S&P 500 companies.
Source: Fortune
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