Why Apple should be considered a high yielder

“When it comes to Apple, one item that often gets a bad reputation is the company’s dividend. A number of investors think the stock’s dividend yield should be much higher given the company’s cash position,” Bill Maurer writes for Seeking Alpha. “While it is true that some other tech names do offer more annual income, that doesn’t necessarily mean Apple isn’t a high yield name.”

“When it comes to the S&P 500, only about 40% of the companies in the index are considered large cap (market cap over $10 billion) and have a dividend yield of more than 2.00%, according to Finviz,” Maurer writes. “Apple currently ranks 155 on the list in terms of annual yield, basically putting it in the top 1/3rd of the index for income generation. That’s not bad for a company that only restarted its dividend in 2012.”

“Another reason why Apple could now be considered a high yielder is when you look at fixed income,” Maurer writes. “Thanks to Brexit and the Fed not hiking rates, US bond prices have soared recently, thus sending down yields. As you can see in the chart below, Apple actually finished Monday’s trading with a higher annual yield than the 30-Year US Treasury.”

Read more in the full article here.

MacDailyNews Take:

Don’t trade AAPL, own it. – Jim Cramer

Is Apple a good investment for dividend growth investors? – June 8, 2016
Apple shares hit ex-dividend as Cupertino Colossus preps to distribute $2.9 billion to shareholders – May 10, 2016


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