I don't know much about stock and companies with money, but people on this thread are implying that Apple must get rid of it's cash? Why? Surely cash is good? Safety net? What if the sales plummet you don't go out of business, etc. etc.?
the century old idea of stocks (and what buffet et al subscribe to) is about generating a yield from profits. the secondary effect is that now those types of investors will buy into Apple since it yields a dividend, like a good old blue chip stock should (which in-turn raises demand for the stock, which in-turn raises the share price - meaning the cash is being put to better use).
I for one would have liked to see apple carry the cash balance. Sure they aren't making much from the cash, but I'm pretty sure there are better uses of the money. For example, why not buy a few suppliers?
Antitrust regs.
Apple has hit that limit, where it has plenty of money to do all that (safety net) and more.
No that sounds silly. But I don't know how much is enough and how much is too little. How do we know Apple has too much?
Note:
Apple's cash increased by $40 billion last year alone.
Apple's dividend plan will spend only about $45 billion in the next 3 years.
that means their cash savings will still be growing despite the dividend.