“Apple is truly one of the more interesting stocks out there. Some years ago it used to be the darling of the momentum traders,” Dividend Appreciator writes for Seeking Alpha. “Over time, the stock has slowly but surely shifted to become more of a dividend investor’s dream, with moderate yield and nice dividend growth year after year.”
“Apple started its most recent dividend history in the summer of 2012 after many years of no dividends at all,” Dividend Appreciator writes. “The first dividend was paid in August of that year at a quarterly split-adjusted level of $0.38 per share. Not even a year later investors got their first raise to a split-adjusted $0.436 or a 15% hike.”
“With the election of Donald Trump, there is the prospect of a possible one-time tax cut on repatriated cash. If that were to happen, up to $230bn of Apple’s cash could be brought back to the US,” Dividend Appreciator writes. “Certainly, some of this might go towards M&A activity – hopefully value accretive ones. Since there are not that many companies with a market capitalization at this level, one would have to be pretty naive not to think a good chunk of this would be used for buybacks and dividends. In other words, there is a potentially large upside to Apple’s future dividend growth.”
“I do believe the dividend hike will be in line with the percentage-wise, and not the dollar-wise, increase of recent years,” Dividend Appreciator writes. “If so, that would mean a hike of 10.5% to $0.63.”
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MacDailyNews Take: As Jim Cramer often say of AAPL: Own it, don’t trade it.
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