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Shares of Apple are up 1.4 percent to $593.93. Shares had earlier exceeded the $600 mark in premarket trading ahead of the announcement. In paying a dividend, Apple is just the latest company to bow to intense shareholder pressure. The issue of what Apple does with its cash position has lingered for years as it has grown to a near obscene amount, and has been an issue for investors even when Steve Jobs was running the company. A regular payout adds to the attractiveness of the stock, which continues to see tremendous growth thanks to hit products like the iPhone and iPad.

Apple would continually look at the dividend level, Oppenheimer said, but he declined to comment on how regularly the company would look at the payout, The move should make Apple appealing to a new class of investors, ones looking for a mt shuksan iphone case safer investment with a regular payout, "While the dividend has been widely expected, we believe that the dividend will make Apple viable to a broader base of shareholders," said Gene Munster, an analyst for Piper Jaffray, Cook and Oppenheimer continually stressed that Apple would be tapping the cash it has in the U.S., and made the point to note that it would not be employing the cash it has overseas, Apple, like many U.S, multinational companies, has cash generated overseas that it is reluctant to bring back to the U.S, because of the current tax policy, an issue called repatriation..

"Because of the tax consequences of repatriating foreign cash, we focused on domestic cash," Cook said. Growth companies, particularly in the technology sector, have long resisted paying a dividend, instead preferring to stockpile the cash or reinvest the money into their own business or in acquisitions. Technology companies in particularly have preferred to keep a healthy surplus in case of cyclical downturns or unforeseen problems. For many companies, a dividend is an admission that the growth trajectory has permanently slowed. The dividend acts as an alternative reason to buy a stock.

In the past few years, several large technology companies have relented and have begun paying a dividend, Microsoft began paying an annual dividend in 2003 before switching to a quarterly payout two years later, More recently, networking provider Cisco Systems began paying a dividend last year, Prior to that, CEO John Chambers had resisted the calls, insisting his company was still in growth mode, For example, AT&T and Verizon, which have strong ties to Apple through the iPhone and iPad, pay out rich dividends to shareholders in part because their growth has slowed considerably mt shuksan iphone case over the years..

Apple is in a unique situation. The company continues to show tremendous growth, and by all rights could justifiably go on without paying a dividend and still attract investors. In its last quarterly report, Apple saw a 73 percent jump in revenue and per-share earnings more than double over year-earlier results. That's not the sort of growth large and mature technology companies are supposed to show. Apple's growth isn't looking to slow; this past weekend's new iPad sales and the longer lines it drew on its first day are testament to the continued demand for its products.