Apple's Stock to Finally Pay a Dividend This Year, Analyst Says

Apple boasts one of the biggest piles of cash any company (or government, for that matter) has ever sat on. And they continue to do virtually nothing with it, simply hoarding and hoarding. But this may change in 2012, analysts and investors believe.

Of course, it's been said in years past. Realistically, Apple could have been paying some sort of dividend for two decades. But why would Apple bother? It's treated its investors well with a consistently fast-rising share price that's remained surprisingly stable despite the shaky economy and notorious unpredictably of tech stocks. Somehow, it's retained status as a growth company when every other company of comparable size became blue-chip long before. And dividends as a whole have become less popular in today's stock market, with less and less companies offering them—and offering smaller ones when they do.

Still, even a tiny dividend would greatly please thousands of investors and most likely give the stock another strong boost too. ISI analyst Brian Marshall believes that dividends overall start making a comeback this year, with Apple leading the way. Considering how volatile the market has been for a good four years, this makes sense. 

Brian suggests a starting yield of 2.5%, paying out as little as 20% of free cash flow—hardly a bite out of the Apple. I would wager even something as small as 1%—accompanied by the promise of yearly dividend raises—would still do wonders for the already successul company. Ticonderoga Securities analyst Brian White says that, in combination with the iTV, the next-gen iPhone, and the next-gen iPad, an Apple dividend could make 2012 its most exciting year yet for investors.