Apple goes ex-dividend, temporarily drops $5.5 billion in market value

“Apple (AAPL) opened Thursday at $464.02,” Philip Elmer-DeWitt reports for Fortune. “An hour and nine minutes later, it hit $457.95, having shed more than $5.5 billion in market value.”

“What happened?” P.E.D. asks. “One never knows on Wall Street, but the most likely explanation is that traders who bought Apple for its $3.05-per-share dividend sold it as soon as the stock went ex-dividend, which was 9:30 a.m. Thursday morning.”

P.E.D. reports, “Apple recovered somewhat, closing Thursday at $461.01, down only $3.97 (0.85%) for the day.”

Read more and see the chart in the full article here.

Related articles:
Apple stock to go ex-dividend tomorrow – May 8, 2013
Apple stock to go ex-dividend tomorrow – February 6, 2013

12 Comments

    1. They still have that and then some… Any money being paid out is money being made during the period. I guess they figured 150 billion is a good enough ceiling?

  1. Pathetic and hilarious. The patient investor looks past all this, makes sure the dividends they receive are automatically reinvested, and lets their investment stake in the company whose stock they own grow.

    Investors can make money in the stock market in different ways, including options and short selling. My primary method is to find great, well managed and innovative companies with the potential to disrupt industries and be market leaders. Apple is one such disruptive company. I don’t worry a bit about how Apple is doing at present, as I know that innovation takes time. I am comfortable looking past all the hype and rancor, as long as the fundamentals and key story about the company in which I invest does not change.

    Today’s stock price changes nothing. In fact, I am better today, as I have received a hefty dividend courtesy of Apple, which I have automatically reinvested.

    The big thing to remember is that investors can make money in the stock market in two ways: from the price appreciation of the shares of stock they own, and if the company pays a dividend, by the COMPOUNDING of the value of reinvested dividends. Instead of selling at the first opportunity, I will let the magic of compounding work for me. You should too.

    Let your Apple dividends automatically reinvest. Over a number of quarters, those reinvested dividends will become whole shares of additional stock. With each share generated by reinvesting the compounded dividends, this will generate successive additional shares. And if Apple’s stock price appreciates over time, as I believe that it will, combined with the potential for Apple to increase the dividend paid, you have a money-making machine. All it takes is time and patience.

    I own shares of Pfizer and General Mills among my other investments. Neither company is considered a fast growing business. Their stocks aren’t sexy or hyped. But both companies pay an excellent dividend quarter after quarter. By letting the dividends reinvest into new shares of stock, I have been amazed over time by how much my investment nest egg has grown from those two very unsexy investments. Apple will do the same, and on top of that, has the potential to appreciate in price significantly if potential new disruptive products and product categories come to fruition.

    So shrug off the story above. Go outside and enjoy life, knowing that your Apple shares will do amazing things for you over time if you tell your broker to reinvest the dividends. Ignore all the crap you read here and on other sites about Apple hysteria. If you look back several years or a decade or two from now, I think you will smile if you do what I’ve chosen to do with my Apple stock and dividends.

    Have a nice day. Don’t worry. Be happy.

    1. Those hedge funds had to sell their Apple stock today to buy more Tesla, Priceline and Netflix. They really don’t like wasting their time with slow-moving laggards like Apple.

  2. Actually, whatever the reason for the drop, the drop (at the end of the day) was reasonable.

    Since the dividend is $3.05 per share, that means Apple has $3.05 less in cash for every share. So a drop of $3.97 per share on the day that Apple pays out $3.05 per share does not seem very surprising. What’s with all the commotion…?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.