“With a higher-than-expected 1.8 percent yield, Apple’s new $2.65 quarterly dividend is expected to expand its shareholder base to investors who previously passed on the stock because it did not pay out a dividend,” Neil Hughes reports for AppleInsider.
“Analyst Gene Munster with Piper Jaffray noted on Monday that Apple’s quarterly dividend represents an annual yield of about 1.8 percent, which is slightly higher than other big cap tech companies,” Hughes reports. “He believes most on Wall Street were expecting Apple to offer a dividend with an annual yield closer to 1.5 percent.
“‘While the dividend has been widely expected, we believe that the dividend will make AAPL viable to a broader base of shareholders,’ Munster wrote in a note to investors on Monday,” Hughes reports.
Read more in the full article here.
So glad I own a bunch of Apple stock. Not only is it growing but I get a dividend too? Hey I would have been fine with just stock going to 1000 a share but content with ever they decide to do.just maintain the war chest so you can continue your bitch slapping of the post pc crap suppliers out there. You have to give Mr Cook his big cash hoards to make the deals that drive our prices down. Kudos to the Cupertino Mob!
Since Apple has shot up so much in the last few days, I wonder what the yield was when the decision was unofficially made. 2% maybe?
5%, compared to my cost basis.
Supply and Demand … declaring a dividend means that the funds that were previously shut out may be buying in. Fixed supply of shares (or smaller supply due to buyback) combined with higher demand = rising stock price. Hopefully, this will reduce some of the volatility of the stocks and drive the contrarian short sellers away …. all leading to a more
steady, rising stock price.
Fixed number of shares. The conference call was pretty clear that the purpose of the buyback is to stabilize the number of shares. They will only buy back whatever number of shares are awarded to employees. This will halt the slow growth in the number of outstanding shares and halt that growth’s slight drag on the EPS.
How can $10.65/yr/share be an enticement to an investor? Stock is plus $600. The stock’s rapid rise ought to be inducement enough.