An Apple dividend increase is imminent

“Apple is scheduled to report earnings on April 27. An earnings report from Apple usually makes big waves, and most Wall Street analysts will probably pay a lot of attention to iPhone sales figures during the quarter,” Andrés Cardenal writes for The Motley Fool. “However, chances are that the company will also announce a new dividend increase, and this could have major implications for investors in Apple stock.”

“Apple reinstated dividends in 2012, and the company has consistently increased payments each year after that. In the last shareholder meeting, Apple CEO Tim Cook reiterated that the company is committed to increasing dividends on an annual basis,” Cardenal writes. “Apple’s dividend history shows they’re due for a hike — over the last three years Apple has announced its annual dividend increases in its earnings report for the quarter ended in March.”

“Looking at the magnitude of the dividend increases in the last several years, most investors are probably expecting a dividend hike in the high single digits to low double digits,” Cardenal writes. “Apple’s dividend payout ratio is still quite modest, in the neighborhood of 23% of the company’s earnings, and currently offers a yield of 1.9%. As a reference, Microsoft (NASDAQ:MSFT) distributes more than 50% of earnings as dividends, and the dividend yield is in the area of 2.6%. Cisco recently increased its dividend by 24%, which should have the company paying out nearly 45% of expected earnings for the current fiscal year to give investors a generous dividend yield of 3.7%.”

Read more in the full article here.

MacDailyNews Take: 10 percent or so?

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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


  1. Does that 23% payout ratio include the buy backs? If so, lower the buy backs and double the dividend, especially if the growth rate is expected to stabilize. Make my loyalty pay off. Stock holder since 2005.

    1. Agree with the comment on Dividends, but as Mr. Buffet has said stock buybacks ARE warranted in some situations. I think Apple in Feb was a good example where Tim Cook should have BOUGHT big.

  2. My wife and I have bought and held AAPL since 1988. Because we have weathered every market storm (and some of them were “perfect” in very bad ways), we now hold 40K shares (three splits from an original 1400 share purchase). Every quarter our advisors/brokers show us how we can EASILY double Apple’s 1.9% dividend AND free us from the blood-chilling volatility we’ve seen recently. But we have not bailed on the company–nor will we anytime soon. You dance with the lady that “brung ya,” but it really WOULD be nice to see a fairly sizable dividend increase from the record cash hoard the company is amassing here and abroad.

    1. If you started buying in 1988 I WOULD listen to your advisers and D I V E R S I F Y! At this point in your life your biggest worry should be wealth PRESERVATION not ACCUMULATION (you’ve kicked ass at that). You got 10 – 20 years left if your lucky my friend GET OFF the roller coaster, you’ve had your fun 🙂

      Oh Hell…on second thought…don’t listen to me if you’ve got 40K shares of  you know what your doing keep it up!!!!

      1. Congrats to Randian. 40K = $4M. Sadly I only have 1/20 of Apple shares but that too started with an investment of $16K
        To Tom – I find that stock advisers generally are only out to get you to trade and charge your for the privilege. If their fees were based on performance it would be a different matter.

      1. Yes, cool dividends. And an even cooler asset value.

        If you paid $10 per share in 1988, then your Compound Average investment return was over 21% per annum for each of the 27 years since 1988. That beats Warren Buffet, I think. And Carl Icahn, too.

        Dude, you rock!

        1. Also, dividends of $83k on an investment cost of $14k represents a “yield on cost” of 592%. Your AAPL investment is now paying _annual_ dividends equal to nearly 6-times your _initial_ investment. Pretty sweet; it quickly makes up for the “bad” years.

          Those who complain about recent poor Apple dividend returns (and share appreciation) are those who were late to the game. You should have bought Apple shares sooner. But still and all, sit tight and your investment is likely to turn out just fine in the long run.

    2. Talk to the company that holds your stock. You can get a company to sell covered calls for you and gain an additional tens of thousands a year with little risk.

      You can also borrow against that for tiny interest rates. We are planning to remodel the house this way.

    3. My wife and I did a similar thing in January 2005. He sold everything and put it into AAPL. We have 23k shares now. It has definitely paid to ignore financial advice and to stick with AAPL. The only advice I can give to anyone who cares is the following: before you check the stock price on any given day, first thoroughly read MDN and the other Apple news websites. You will soon learn that a decline in the stock price has nothing to do with anything. Hold on Apple.

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