Apple could be the greatest dividend growth stock of all time

“In early March, Apple announced plans to start paying a dividend for the first time since 1995. The Company plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012,” Parsimony Investment Research. “That equates to an annual dividend of $10.60 and a current forward dividend yield of 1.9%.”

“On the surface, Apple rates pretty well with an overall Parsimony rating of 91. However, technology stalwarts, International Business Machines (IBM) and Intel Corp. (INTC), carry a slightly higher rating. That said, a quick glance at the sub-ratings for these stocks reveals why Apple would have a lower overall rating,” Parsimony Investment Research. “Apple has highest scores of all the stocks on the list in every sub-category except Dividend History. Clearly, Microsoft (MSFT) and Cisco (CSCO) can’t hold a candle to Apple. Unfortunately, Apple can’t do anything about its short Dividend History, but dividend growth investors should be able to look past this short history given the Company’s financial stability and future dividend potential.”

Parsimony Investment Research writes, “This shouldn’t be earth-shattering news to anyone, but Apple may very well become the best dividend growth stock of all-time.”

Read more in the full article here.

9 Comments

  1. An index is only as good as the data and the algorithm used to calculate it. In this case, one piece of data is obscuring the rest.

    This appears to be somewhat similar to the process by which an individual’s credit rating is calculated. If you have a credit score of 780, for instance, but cancel one of your old credit cards, then your credit score will probably drop even though nothing material actually changed – your income, your ability to pay your debts, etc.

    Apple may not have a recent history of paying dividends. But the company is debt-free and has sufficient assets on hand to pay the current dividend for many years to come. The fact that Apple rates slightly lower than IBM and Intel is irrelevant – Apple is a tremendous dividend growth stock.

  2. Cant wait until I can live off the cash flow Apple throws my way. The stupidity of people who complain about a meager dividend that makes no difference to Apple’s operations blows my mind. Just because Jobs didn’t do it doesn’t mean it shouldn’t happen.

    1. I think that Apple didn’t do it before because I suspect that Steve was totally focused on products in the pipeline. The rest didn’t matter to him. Knowing that his time was ever more limited he shut out all distraction to focus on his real passion.

    2. when your happiness and life WAITS the day… for your stocks to pay off – that is a very very a sad position to be in – IMO

      to make that sort of statement is exactly what bigger buyers playing the same Stock Game as you; can you imagine them saying and thinking also – what you said but about you… – they think we are all stupid. Why because – Money is Power. And you are a tiny fish in the ocean man. I don’t care how smart you might be or how brilliant you are…

      success and money brings greed

      Hope it does not effect Apple in the same manner…
      We shall see just how DIFFERENT Apple is. Or shall we see the symbology in the bite of the Apple logo being – the mark of the beast? Disobeying Gods wishes – Eve takes a bite from the forbidden garden.

      Apple was more interest gin as a RUNNER UP… a true contender a fighter…

      – but you ain’t gonna suck my life into money is the only way… i never saw apple that way – it might have changed

  3. “This shouldn’t be earth-shattering news to anyone, but Apple may very well become the best dividend growth stock of all-time.”

    Given Apple’s current and expected growth rate, it will become the greatest dividend growth stock on the day it makes its first dividend payment.

  4. – could be?

    well the stock was never my game
    I still loved Apple when they were almost dead
    now they are doing great so I expect greatness
    where is the excitement now
    please don’t try to make it all about the stocks

  5. Completely useless article with about the same integrity as the ShamWow guy pitching on TV. Xerox was the greatest dividend growth company of all time, Apple hasn’t come close to producing stock appreciation and yield equal to Xerox. Again remember he is talking all-time, not the past 5 years.

    Instead of spittel, simple state, there is no better growth stock paying a dividend on the horizon today. While valuation is top heavy, it will be several years before Apple sees a viable competitive threat and thus we recommend a BUY rating.

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