[www.businessweek.com]

Apple Inc. (AAPL) (AAPL) is considering a stock split that could prompt the company to be added to the Dow Jones Industrial Average, according to a research report from Sanford C. Bernstein & Co.

Apple’s decision in March to pay its first dividend in 17 years makes it more likely the stock could be added to the index after a split, said Toni Sacconaghi, an analyst at Bernstein who rates the shares outperform, in a report today.

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I wouldn't mind a stock split, but I don't see it as necessary either. Splits have no real effect on the value of the company. They're mainly a "feel good" measure to make the stock "look cheaper" to investors.

I DO like the dividend... I don't want it so big that it starts to cut into R&D monies, but some dividend is a good thing.

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Paul F.
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A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
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Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.
--
Eureka, CA

I don't see how a stock split would help, unless it made it possible for the ordinary investor to buy a lot of the stock.

The word "lot" here means "100 shares".

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freeradical
I don't see how a stock split would help, unless it made it possible for the ordinary investor to buy a lot of the stock.

The word "lot" here means "100 shares".

then they should split 1:100 so each share is bout $6.

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Paul F.
I wouldn't mind a stock split, but I don't see it as necessary either. Splits have no real effect on the value of the company. They're mainly a "feel good" measure to make the stock "look cheaper" to investors.

I DO like the dividend... I don't want it so big that it starts to cut into R&D monies, but some dividend is a good thing.

The tendency is for a split stock to want to go back to its pre-split price. Of course there are plenty of exceptions. But wouldn't you rather have 2X-6X as many shares in a couple years at the same price one share is now?

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AllGold;
I've found LOTS of exceptions to that...
Many times, when stocks split, it's because the company is flailing and trying desperately to figure out some way to increase their stock price...
Not saying that's ALL the time, but I am holding (or have sold in the past couple years) 3-4 stocks that split, and then went DOWN in price...

I do think that Apple's course would remain unchanged, when split-adjusted. It would keep going up steadily.
Except for an "exuberance bump" early on, I don't think it would rise any faster than if it did NOT split, however.

Of course, if I was an expert in these things, I wouldn't be hanging out here, I'd be at the country club

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Paul F.
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A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.
--
Eureka, CA

The obvious advantage of a stock split is to make it more attractive and in the affordable price range of the average retail investor, as opposed to the mega investor and the institutional investors with huge sums to play with. Seems to me a good idea as the retail investors tend to be more stable and take the buy and hold approach to investing thus removing some of the volatility created by larger investors who jump in and out with computer managed programs. Just my humble opinion could be totally off base but in the market when you get right down to it the old saw "you pays your money and you takes your chances" is the final word. A stock split and the upcoming commencement of dividend payouts would seem to be very attractive to a lot of small investors.

In order to add AAPL to the DJIA, it's very important for it to split.

The DJIA is not weighted by market cap but rather by share price. So companies with high share price have more bias. Apple is more than 3.5% of the S&P 500 based on market cap. If it didn't split and was added at $600/share, Apple would be make up more than 40% of the DJIA (assuming an average share price of $30/share for the 29 remaining components).

......so instead of a banana split.....they will call it an APPLE split....?????




....is this JUICIER than wearing the words JUICY.....on your @#$%&.....???

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I reject your reality and substitute my own!



Edited 1 time(s). Last edit at 07/31/2012 02:04PM by NewtonMP2100.

Splits DO count. A stock that is priced like Apple doesn't bring in new investors and can be cumbersome. Over time the split shares(lowered price) increase in price and make you money because they are more freely traded.

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Paul F.
I wouldn't mind a stock split, but I don't see it as necessary either. Splits have no real effect on the value of the company. They're mainly a "feel good" measure to make the stock "look cheaper" to investors.

I DO like the dividend... I don't want it so big that it starts to cut into R&D monies, but some dividend is a good thing.

Samintx;

Actually, no... they really don't. Buy one share now, or 3-5 split shares, it all equals the same share of the company, and at the higher pre-split prices, the increase over time still comes out about the same...

It's a "feel good" measure... Investors "feel good" about getting a "Deal" on the stock after the split, but it rarely makes a real difference over the long haul.

People have been saying that AAPL should split since it passed $100 share... It hasn't, and it has continued to rise, and people have continued to buy.

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Paul F.
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A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.
--
Eureka, CA

I hope AAPL doesn't pay a dividend until they own everything/have all the worlds assets.

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Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.