Apple shareholders: Expect another small dividend raise in April

“Last month, technology giant Apple reported a tremendous quarter thanks to blowout iPhone sales,” Bill Maurer writes for Seeking Alpha. “At the next earnings report in April, investors are expecting an update on the company’s capital return plan, which should include a dividend raise.”

“Investors should not expect a tremendous raise,” Maurer writes. “Looking at the most recently filed 10-Q shows that Apple has spent $73 billion on the buyback since the company started its capital return program, while only $27 billion has been paid out in dividends. The general consensus is that Apple will raise its buyback amount after the April earnings report since the company is expected to finish the current $90 billion buyback this calendar year. I believe the company will continue to focus heavily on the buyback in the short term, so I do not think investors should be looking for some massive dividend raise this year. I’m currently expecting a small dividend raise combined with another increase in the buyback to perhaps $125 billion.”

“I believe the minimum raise will be two cents because I don’t think Apple wants to get close to that level where the total payout could be less in this fiscal year,” Maurer writes. “However, I don’t think the company is going to go too much above last year’s raise, which is why I think $0.51 is the maximum Apple will go to.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

5 Comments

  1. They should increase it to keep it in line with the historical percentage return. Somewhere between 1.75% to 2%. I would prefer 2% which would be around $0.62 per quarter given the current stock price.

  2. Suspect the dividend will increase 5-6 cents share to around .53 verses the .47 per share / quarter current …..

    Buyback maybe add another $20-$30 billion BUT Apple has some HUGE PLANS AHEAD and will need a large pile of cash!

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