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Apple Must Start Paying a Dividend, Sacconaghi Says: Tom Keene

Apple Inc.’s failure to pay a dividend is preventing some investors from buying shares of the Mac, iPhone and iPad maker, according to Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co.

Sacconaghi said about 10 percent to 15 percent of the investors he speaks with avoid the Cupertino, California-based company because they only buy firms with payouts or they’re concerned Apple will use cash for an acquisition. Apple had $25.6 billion in cash and short-term investments as of Sept. 30, the fourth-biggest amount in the Standard & Poor’s 500 Index when companies with financial divisions are excluded.