Is Apple cheating on the dividends?

“In July of 2012, plans were announced [by Apple] for a program of returning capital to stock holders via a stock repurchase plan and dividends,” J. M. Manness writes for Seeking Alpha. “Since then, almost $103 billion has been returned.”

“Since initiation, the dividend has been adjusted twice,” Manness writes. “But, while the dividends have gone up, the number of shares has gone down due to the buyback[s].”

“The result is that in spite of growing revenue and profit, since Q2-2014, the total dividend paid each quarter has slipped from the previous quarter,” Manness writes. “With record breaking sales, revenue, and earnings this past quarter, dividends as a percentage of earnings is at an all time low, just 15.4%… If Apple wants to keep the earlier ratios, then it will need to raise the dividends. My estimate is that Apple is likely to raise the per share dividend to between 62 and 65 cents per share from the current 47 cents.”

Read more in the full article here.

MacDailyNews Note: During their Q115 conference call with analysts, Apple CFO Luca Maestri stated that the company was “on track to announce an update to the program in April when we report our second quarter results,” so Apple shareholders will find out the dividend number soon enough. Earnings are estimated to be released on April 22, 2015.

25 Comments

  1. So this idiot writes a dumb story with lazy research and the Stock tanks in the last half hour of trading, despite China Mobile, gaining millions of 4G customers and confessing it is in heat to get at the Apple Watch and bundle it with iPhone 6 and 6 plus. WTF?

    1. Don’t blame him. Blame the idiots that fall for this shit.

      When you tell your kids about Santa’s Naughty/Nice list or about the Boogie Man under the bed you are winning until the kid grows up and tells you to take a hike because it’s all made up BS.

      Same thing here. This guy wins until people open their eyes and call this FUD for what it is.

    2. typical anal-yst, viewing AAPL through the misty lens of a BACN evaluation when he should spend the time to make a proper EGG chart and adjust +- for BUN.

    3. So this idiot names Michael shoots off his big snarky idiotic mouth knowing nothing about any time the author may have spent and making the most idiotic statement ever implying that this story had anything to do with the price drop.

      He probably would be too embarrassed to say anything like this in public but can be a shit head because he is anonymous,

      1. I doubt that. Without the dividend they would have well over a quarter of a trillion dollars in cash. One of Jobs’ strengths was the ability to change his mind.

  2. Like Manness, I don’t expect a big increase in the dividend, but in April 2016, I expect a jump to about $1, because by that time Congress should have figured out what they want to do with foreign income corporate tax reform. I’m not talking the one-time tax holiday for repatriating old profits, but the future tax rate. Obama has proposed 19%, presumably Congress will propose something around 15% or less. Once that happens, Apple will be able to manage its total cash easier without having to sell debt.

  3. I’m happier with owning the stock more now than I did when it didn’t offer any dividends at all. Even if Wall Street doesn’t fully recognize Apple’s value and the multiple drops, at least I still get my dividends every quarter and it easily covers all my living expenses as a retiree. I’m sure the dividends will go up a bit every year to at least compensate for inflation.

  4. “With record breaking sales, revenue, and earnings this past quarter, dividends as a percentage of earnings is at an all time low…”

    In a word, Bullshit!

    For many years Apple did not pay out a dividend. Therefore, the “all time low” for dividends — as a dollar value or as a percentage of anything else — is zero. If Apple pays out one cent per year of dividend it is still not at the “all time low”.

    The rest of this author’s analysis is about as bad.

  5. Wow! That’s a big stretch just to put Apple and cheating in the same headline.
    Hey Manness, I think the National Enquirer is calling you for a job.

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