The Soup Nazi is also the nickname of the eponymous character, Yev Kassem, played by Larry Thomas. The term “Nazi” is used as an exaggeration of the excessively strict regimentation he constantly demands of his patrons.
No, Apple is not a 21st century reflection of The Soup Nazi, but CEO Tim Cook and Apple’s board of directors is telling shareholders, ‘No (special) dividend for you.’ That’s a good thing. Shareholders do not deserve a dividend.
What’s the issue? Philip Elmer-DeWitt:
At an annual shareholder meeting at Apple Park in Cupertino on Tuesday, Cook responded to a question on whether the company might double its dividend in the wake of changes to United States tax laws that allowed corporations to bring back overseas cash at lower tax rates than before.
Apple has this monstrous overseas hoard of cash that comes back to Cupertino (or wherever Apple stashes its money; probably not a bank in Cupertino) and investors want a cut of that big pie.
Special dividends, I‘m not really a fan of
Way to go, Tim. But Apple remains committed to shelling out tens of billions of hard-earned cash to investors who do not deserve anything more than a growing stock price.
But in terms of annual increases in the dividend, it is something that this board and management are committed to doing.
I understand the legalities and issues regarding shareholders (collectively, they own the company but don’t have much say in how it is run). In APPL’s case, shareholders do not deserve a bonus beyond the stock price increase which has made billions for millions.
Let’s say I own a company. 100-percent. The company is doing well, but to make it grow and prosper I need investors who take a share of my 100-percent ownership. I get needed money to help the company grow. Those initial investors are much like partners and deserve a share of whatever and however the company benefits because they invested directly into my company.
Stock market investors are, yes, shareholders, but when they bought their stock Apple didn’t get the money. Whoever sold their APPL stock on the exchange received the money. If the stock price goes up, shareholders should benefit by selling their stock purchase for a higher amount.
Why do those– not original– stockholders deserve a bonus from Apple in the way of dividends? They don’t. Those investors didn’t invest anything in Apple as my original stockholders in the example above. They did not give money to Apple. Yet, they prosper with dividends?
No. That’s wrong. Legal? Yes. Typical? Sometimes.
Those investors did not give money to Apple, therefore, no dividend for you. Fortunately for those investors, Apple has so much money in cash it doesn’t know what to do with it, but massive dividends simply show Tim Cook, the board of directors, and Apple’s executives do not have vision beyond the next hardware gadget to roll out of a factory in China.