Updated from 11:43 a.m. EST to provide more analysis from Goldman Sachs analyst in the sixth and seventh paragraphs.NEW YORK ( TheStreet) - Apple ( AAPL) has surpassed investors' wildest expectations, and with the announcement of a dividend and a share buyback earlier this week, shares are more attractive than before, according to investment managers. Investors had been urging Apple to return some of its cash to shareholders, and with the announcement that it will pay a dividend and buy back $10 billion in stock, investment managers see plenty to like.
Channing Smith, portfolio manager of Capital Advisors Growth Fund, believes the dividend could grow over time, and there's also a chance of additional buybacks. "When you look historically at what tech companies have done, this is a very attractive yield," Smith said over the phone. Smith owns shares of Apple, but recently cut his position due to the run-up in shares. He put some of the money into Microsoft ( MSFT) and Nokia ( NOK). Apple is firing on all cylinders, winning the consumer space, hands down, according to Capital Advisors' Smith. "Product innovation continues, the price points are coming down on older products, and there is a surprising lack of competition in the space," he noted. Smith believes that, even though Apple has blown the door off earnings over the past couple of years, shares might be ripe for a pullback, given the recent run-up. "If you see a pullback, we would be telling investors to add to positions, as the story still has legs." Gary Goldberg's Pursche notes that, although the dividend is nice, Apple's driver will continue to be product innovation and sales. "It's a freight train on rails right now, and it's moving," he said. Many investment managers believe that Apple is likely to continue generating significant amounts of cash, and the $45 billion returned over the next few years will not hamper innovation, or stretch Apple's purse strings, as CEO Tim Cook noted on the conference call yesterday. Not only does Apple "think different" about its' products, it does so about its cash hoard as well. That is music to shareholders' ears. Even if they have to download it from iTunes first. Interested in more on Apple? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. -- Written by Chris Ciaccia in New York >To follow the writer on Twitter, go to http://twitter.com/commodity_bull. >To submit a news tip, send an email to: firstname.lastname@example.org