Apple’s blowout earnings fuel push for dividend hike

“Wall Street cheered Apple’s robust quarterly report, but now investors are waiting to see what the tech giant does with its record amount of cash,” JeeYeon Park reports for CNBC.

“Apple generated $14 billion in operating cash flow in the March quarter, making the company’s total cash position of around $110 billion,” Park reports. “‘The best thing they can do is [make] steady increases in the dividend,’ said Larry Haverty, portfolio manager at Gabelli Multimedia Trust on CNBC’s Closing Bell. ‘There’s plenty of room for improvement in the payout…Steady increases maybe once every six months and push the stock up between 2.5 and 4 percent yield and we might even get more than $750 [a share].'”

Park reports, “Last month, Apple announced it will pay a quarterly dividend of $2.65 per share, starting in the quarter beginning July 1, and added it will begin a $10 billion share buyback program. Other analysts seemed to agree that Apple should increase its dividend payout. ‘We continue to believe that the dividend is conservative and we see plenty of opportunity for growth in dividends as well as buybacks,’ wrote BMO Capital Markets in a research note.”

Read more in the full article here.

MacDailyNews Take: It begins.

[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]

28 Comments

  1. There should have been no dividend agreement in the first place. The vultures are not shareholders. Shareholders “hold” stock as an investment and deserve dividends. Generally I would say the real “holders” don’t care about the dividend but care only about growth and appreciation of the stock.

    1. Agreed. There should have been none. And now the cackling starts for an increase (by people who either have no financial stake on no ethics). Go back and listen to all you analysts who said the bubble was bursting. Too bad it didn’t burst on them.

    2. Wrong.

      The ultimate duty of any joint-stock corporation is to pay dividends to its shareholders. Apple should have been doing this for the last five years at least.

      -jcr

  2. Stupid. Apple said that 71% of that fresh cash is overseas. To pay for a higher dividend, that cash would have to be brought back to the US and Apple would have to pay 35% income tax on it!

        1. They aren’t giving anything away.The shareholders own the company. They can invest the money overseas for income and that would defray the cost of borrowing over here.

    1. Money for free? As a long term stockholder I’ve contributed 6 figures of capital for many years now. I own a portion of that $110B and every other asset the company has. I’d like some of my money if they don’t need it for something important.

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