“History has revealed that the best-performing stocks during the previous decades have been those that shelled out ever-increasing cash to shareholders in the form of dividends,” Valuentum writes for Seeking Alpha. “Unfortunately for the individual investor, most dividend analysis that we’ve seen out there is backward-looking – meaning it rests on what the company has done in the past: how long it has raised its dividend, etc.”
“Although analyzing historical trends is important, we think assessing what may happen in the future is even more important,” Valuentum writes. “That is why we created a forward-looking assessment of dividend safety through our innovative, predictive dividend-cut indicator, the Valuentum Dividend Cushion™. We use our future forecasts for free cash flow and expected dividends and consider the company’s net cash position to make sure that each company is able to pay out such dividend obligations to you — long into the future.”
Valuentum writes, “In this article, let’s evaluate the recently announced dividend of Apple (AAPL). We expect double-digit dividend growth from the iPad-maker for some time to come.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]
““History has revealed that the best-performing stocks during the previous decades have been those that shelled out…..”
———-Actually, history has revealed that AAPL has been one of the best-performing stocks of the last decade, WITHOUT a dividend.
True and anyone who expected Apple to Think Different as regards to it’s cash sure found out different. We’ll have to wait and see if this dividend only adds a carrot and makes a few new friends, or signifies anything more.
… heard from. Finance … PFAH!
Dividend growth is based on several factors, one of the big ones is the dollars-per-share offered and another big one being the percentage of those dollars compared to the price of a share of stock. If AAPL continues on its merry way and grows until, at least, it’s rear-ward P/E is in the high teens, a static 2% dividend will indeed see double-digit growth. Because the Profit curve will be seeing double-digit growth and the stock price will be rushing to catch up with that. Yet, the dividend will remain a static 2%! Should next year’s rate grow to 2.2% – 10% growth – that would require a huge jump in the dollar value.
Still, 2% is a low dividend value. Good, solid, stable companies typically offer north of 3% and often offer better than 4%. AAPL at 1.8% (the value of the stock rose after the dollar value was announced) is an after-thought. Still, made my AAPL-owning wife very happy to hear it.
Here’s my forward-looking assessment of dividend safety through my innovative, predictive dividend-cut indicator, the KingMel Dividend Cushion:
Apple has no long-term debt, a Mons Olympus-sized pile of cash and securities, and a relatively modest dividend. Apple can pay out that dividend for a long, long time. Assessment over.
PROBLEM WITH DIVIDEND:
OK – We have a dividend – Now the next thing is – “when will Apple raise the dividend” ….. and did they raise it enough or too much ….
The complainers will be there no matter what you do – So in my humble opinion the dividend should be as follows:
5% Dividend for ALL SHAREHOLDERS who have held the shares at least one year …. If you have Five-Year Old Shares then you get a .5% increase or 5.5% dividend …. Based on $600 stock price …. That is the plan for this year …
The dividend should be paid once a year and right after January 1st so as to allow shareholders to have the money as long as possible before paying taxes ….
Anyone who buys Apple stock before April 1st of this year will be eligible but only up to 100 Shares per Holder for this special “opt in period” ….. So if you buy 200 shares this year you will get a dividend on 100 shares and next year after Jan. 1 you will get paid on 200 shares ….
Each year the dividend is subject to adjustment by the Board – Which they can do in October / November after Apple’s Year-End ….
All if I was CEO for the Day ……