For dividend divas

Tough Valentine’s Day for Europe as major credit agency Moody’s cuts ratings on six European countries, and Britain’s outlook to negative.  Just means they think the chance of these guys paying people back are looking worse.  Also, Greece pissed off the Eurozone by getting a little last-minute cold feet (they are supposed to meet today (Wed, Feb 15) to sign off on the bailout) - Again, caution Europe will be a bumpy bumpy ride (see entry from Feb 13).  Anyway, my day was pretty quiet, but there was a funny joke that went around the floor.  My wife already has an iPad , iPod , iMac, iPhone.....so I bought her an iRon . 

Thankfully US is faring a lot better (knock on wood).  I like this article - Dividend Payout Could Hit Record Amount This Year.  That’s pretty positive and we’ll be hearing a lot more about dividends as Apple  considers  a dividend. In general, Apple will get a lot of press time as it's now by-far the biggest company in the world (as the stock market sees it) with lots of cash.

  

Now let's try to understand why some people love dividends.  Not too long ago my sister and I found the most amazing lizard vintage Chanel bag from Resurrection in LA – you should shop here!   It got a bit tricky because they only had one so we agreed to share it.  Means we now we both have 50% equity (ownership) of this beautiful bag.  Now the reason I justified this extravagant purchase is I genuinely think it’ll be worth more money eventually.  This is precisely how I justify my stock purchases too.  But willl move swiftly on from this purse because my NY-based sister does read this and it's her turn to have it. 

You see, I personally buy equity (stocks) to become an owner in companies I like.  Sure, I’ll part with some cash in exchange to own some part of your amazing company.  Imagine if you invested some cash with Mac Mcdonald when he had just one burger joint - you’d be reading this from your yacht.   However, as an owner, you expect they use your cash thoughtfully (a) investing it wisely to grow the business or (b) share the cash they make with you.  If you are someone who loves companies that have an established business and throw you cash frequently probably makes you a value/dividend investor.  Others who prefer to let old Mac continue just opening up new burger joints with your money probably makes you a growth investor. 

Apple is under a lot of pressure to decide what to do with their U$98b in cash.   A lot of people think we get a decision by their Feb 23 shareholder’s meeting.   Some argue a dividend would be a big  catalyst (guess it could be for dividend-whores).   I personally think the term catalyst is way overused.  Real catalysts need to be game changers (like the iPhone or Jbrand stretchy jeans on 'fat days').