Steve Jobs rolling in his grave on dividend increase announcement

Stephanie Link(few minutes ago on CNBC): "Steve Jobs would be proud". This is what mainstream "analysts" think or are meant to think about Apple`s dividend increase.

As you may have heard already, Apple announced a dividend of 2.65$ and a share buy back program. This is something Steve Jobs fearlessly fought against since he took over the company. Unfortunately his famous motto "Stay hungry, stay foolish" died along with him at Apple.

Yes, some Apple shareholders must be popping the champagne bottles right now, but this actually spells trouble for Apple in the long run. This is yet another confirmation that Job`s creative genius died along with him.

The mainstream bank "analysts" should ask themselves how come Warren Buffett is also totally against the idea of dividends and yet has managed to outperform the market by far.

A dividend comes along with lots of strings attached. It comes bundled together with higher expectations built into it. There`s no hunger, just complacency. Tim Cook is taking company in the wrong direction and this will only become obvious in time. Company is still running on Job`s inertia and his plans, but as soon as those are out...expect Apple to be just another tech company. By raising dividend, Apple pretty much proved it`s not going anywhere in the long run.

What both Jobs and Buffett knew was that nothing beats potential growth. Paying a dollar in dividend today is destroying 10 dollars of growth tomorrow. In our case, Apple has, apparently, enough spare cash, but it`s not as much as the cash dumping into dividends that presents an issue, but the totally different way of relating to business strategy that should concern everyone.

When rival industry will be fully capable of emulating Apple`s current position in mobile computing, trend which is already happening, Apple won`t have much to hang on to. In the absence a creative genius like Jobs, Apple will end up stuck with no growth prospects coming out of novelty products that should force industry to emulate and follow. In the end, Apple will have nothing else to show for except a fat big drag of a dividend on a stagnating company.