One Thing Tim Cook Can Do To Take Apple Past $500

Tim Cook is Apple's new CEO and has successful brought the company impressive revenue and earnings numbers. While his personality and management style is different than Steve Jobs' style, Tim Cook has investors wondering if he will take the company in a new, unprecedented direction. In fact, many analysts think Apple will finally use its huge cash position to pay out a dividend or pursue other strategic opportunities. But would Steve Jobs thought about the same opportunities?

Steve Jobs Ran a Different Ship

Some people simply didn't like Steve Jobs. He knew how to run a company, but he just seemed to be extremely stingy. Not only did he not donate any of his money to charity, but Apple AAPL was run stingily as well.

For example, the exclusivity revolving around the iPhone and MacOS software is restrictive to earnings. Apple may have been able to make more money by licensing the operating system to certain computer manufacturers, including Dell DELL and HP HPQ. The iPhone could have also garnered much more revenues by being on multiple carriers. While the iPhone has been expanding its reach, it could have been done earlier, especially considering that many Americans prefer Verizon VZ over AT&T T. Regardless of his tactics, Jobs maneuvered his company to greatness, in the eyes of Wall Street and the greater public.

Will Apple Issue a Dividend?

Issuing a dividend could help Apple in the long-term. Many investors have been apprehensive in taking larger positions in the company. However, with an attractive dividend, Apple may look a lot more attractive to the uncertain investors. This could result in a large influx of long-term investors looking to use Apple stock as an income-generating vehicle.

Benzinga reached out to Shaw Wu of Sterne Agee to learn more about Appel's alternative strategies.

According to Wu, Apple has historically spent its cash by acquiring small, private companies. Many of these acquisitions have been successful as they have helped streamline Apple's production capabilities and interconnectedness. Wu, however, thinks that "Apple may be better suited in the long-term to pay out a dividend in 2012."

"Not only does Apple have the cash flow to comfortably pay a dividend, but the primary benefit would be to attract new investors. Many retail investors really want to own dividend-paying stocks, so they may invest more heavily." The real change, however, comes in the form of financial institutions. Many mutual funds and exchange traded funds only seek out dividend-paying stocks. If Apple were to pay a dividend, "it would open itself up to a whole new class of investors, who are likely to purchase plenty of shares."

How Else Can Tim Cook Improve Apple?

Steve Jobs has since passed, and Tim Cook has taken the reigns of the company. Apple's share price is continuously appreciating, and there may be various ways for the company to further increase its value. Recently, rumors started circulating that Apple may be issuing a dividend. Under the Jobs administration, this move was unfathomed. Despite having a gargantuan cash pile, Jobs refused provide his shareholders with cash dividends. If Cook instates quarterly dividends, I for one think that he is doing the company and its shareholders justice.

While many shareholders built their investments when Apple was worth $100 and even $200 per share, many more took the risk at $300 and $350. These late shareholders are true believers. When the company reached the $300 level, many traders were in disbelief and believed that the company's stock would never stay that high. For the risks that some investors made, a dividend would be greatly appreciated.

Tim Cook has yet to prove himself in a monumental way. Whether it's producing the next iPhone or iPad upgrade, or the next "iDevice," Tim Cook has to prove to investors that he will be able to steer the company in a positive direction like his predecessor. I personally think a quarterly cash dividend could do just that. Only time will tell, but rewarding his investors may be one of Tim Cook's best ideas.

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