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Will Apple Start Paying a Dividend in 2012?

Friday, 23 Dec 2011 | 1:08 PM ET

Apple shares broke above the $400 level Friday, but what about the stock’s prospects for 2012 — and will it start paying a dividend? One “Fast Money” analyst weighed in.

Jeff Fidacaro, an analyst with Susquehanna Financial, said Apple appears to have plenty of upside for at least the next quarter.

Apple Up 5%
Discussing whether Apple could break new highs in 2012, even as it hit $403/share today, with Jeff Fidarco, Susquehanna Financial.

Fidacaro increased iPhone shipment estimates 11.8 percent to 30.1 million in the first quarter of 2012 and expects the Cupertino, Calif.-based company to sell 111.4 million for the entire year.

Apple, he said, had “two very strong secular growth stories” in the iPhone and iPad.

Fidacaro issued a “positive” rating on the stock, with a price target of $545 per share.

Apple shares traded at $401 midday, up nearly 1 percent.

Fidacaro also said he expected a new, high-definition iPad or Apple TV announcement in February, and the new LTE-based iPhone 5, which could begin production in June.

Apple, he said, was “definitely now considering” paying a dividend on its stock.

A 2 percent dividend yield would cost the company about $8 billion out of $81 billion in cash on its balance sheet.

“It would be a nice move if they can get the dividend in the first half,” he said.

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Trader disclosure: On Dec. 23, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Weiss owns WLP; Weiss owns EUO; Weiss owns NIHD; Dicker owns CHK; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Najarian is long; Najarian is long MOS call spreads; Najarian is long AAPL call spreads; Najarian is long HSBC call spreads; Najarian is long VMW call spreads; Najarian is long CHS call spreads; Najarian is long RMBS call spreads; Najarian is long Long CIGX; Najarian is long CBOE; Najarian is long CME

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For Tim Winter
AMERICAN WATER WORKS CO INC I, Timothy Winter, CFA hereby certify that the views expressed in this report accurately reflect the analyst's personal views about the subject companies and their securities. I have not been, and will not be receiving direct or indirect compensation for expressing the specific recommendation or view in this report. Our affiliates beneficially own on behalf of their investment advisory clients or otherwise less than 1% of the common stock of AMERICAN WATER WORKS CO INC as of October 31, 2011.

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ATVI – BMO Capital Markets makes a market in this security

ERTS - BMO Capital Markets makes a market in this security.

GME - BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months. This issuer is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO CM Ltd. or an affiliate within the past 12 months: Non-Securities Related Services.

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For Jeff Fidacaro
SFG is a market maker in the securities of Apple Inc. (AAPL).

SFG and/or its affiliates beneficially own 1% or more of the securities of Apple Inc. (AAPL)

Susquehanna International Group, LLP (SIG) is comprised of a number of trading and investment related entities under common control, including Susquehanna Financial

Group, LLLP (SFG). SIG, its affiliates and/or its principals may have long or short positions in securities or related issues mentioned here. SIG, in its capacity as specialist and/or market maker may execute orders on a principal basis in the subject securities. Information presented is from sources believed to be reliable, but is not guaranteed to be accurate or complete. Past performance should not be taken as an indication or guarantee of future results. Hyperlinks provided in this report are for your convenience. Please be aware that the products and information supplied on these hyperlinked pages are not endorsed or approved by SFG.

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