“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