Is Silicon Valley Stiff-Arming Shareholders?

Few regions of the U.S. are as flush as Silicon Valley. And yet so many companies there are reticent to pay out dividends. Just today, Apple (NASDAQ: AAPL  ) decided to defer further decisions regarding what to do with its $137 billion treasure trove despite huge pressure to return more to shareholders.

Others are simply building grander headquarters, with Google (NASDAQ: GOOGL  ) , and NVIDIA (NASDAQ: NVDA  )  emerging as the latest examples. Should investors care? Or is what seems like excess a necessary evil to compete in the world's top tech hub?

The Motley Fool's Alison Southwick asks Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova for his perspective in the video below. Please watch, and then leave a comment to let us know what you think.

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  • Report this Comment On February 28, 2013, at 8:31 AM, rkiefl wrote:

    I don't think its necessarily a bad thing but I do think that these businesses have a duty to shareholders and themselves to demonstrate the return on such investments.

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