“Each year in April, Apple updates its capital return program,” Bob Ciura writes for Seeking Alpha. “While the company does pay a dividend, which yields slightly less than 2%, its past two annual dividend increases were below what one would normally expect from such a prodigious cash flow generator.”
“At first glance, there seems to be no reason why Apple can’t raise its dividend by 20% or more,” Ciura writes. “After all, other technology giants with less impressive growth in recent years, such as Microsoft and Cisco, have had little trouble raising their own dividends by 15-20% in recent years.”
“But there are some very significant caveats Apple investors need to know, particularly for those who want AAPL to raise its dividend at a high rate,” Ciura writes. “Apple is very likely to hike its dividend again this month, but here’s why investors should temper their expectations… Expect Apple’s 2016 dividend raise to be closer to 10% than 20%.”
Much more in the full article here.
MacDailyNews Take: Yup.
SEE ALSO:
A new dividend policy for Apple – April 5, 2016
Apple CEO Cook talks privacy, dividend hikes, acquisitions, Apple Car at annual meeting of shareholders – February 26, 2016
Apple: What’s the 2016 dividend raise? – February 8, 2016
How excited is too excited?
Excited is when you see an attractive person on the sidewalk. Too excited is when you forget you are driving, and collide with another vehicle.
Cisco current dividend .26
Microsoft current dividend .36
Apple current dividend .52
A 10 or 20 percent increase is not that exciting when taken per share.
Yep. Dividend is 52 pennies per share quarterly; an increase of 10% to 20% would be between 5.2 to 10.4 pennies.
What they will do though, is increase it by a whole number of pennies, say 6 pennies, and then tell you the percentage of that raise, 11.538% in this example.
Hopefully Apple raises its dividend by 10 pennies or more.
Well, it depends how many shares you own.
Hey MDN, want to know why there are so few comments on this article? Because every time we open this article we are redirected to the App Store!
A raise is a raise! Let’s keep this gravy train rolling!