Analyst: Apple may boost dividend and buyback program to reward shareholders

“Apple will report earnings after the close of trading Tuesday,” Teresa Rivas reports for Barron’s. “RBC Capital Markets’ Amit Daryanani reiterated an Outperform rating and $157 price target on the stock today. ”

AAPL’s net cash position has grown to $159B from $153B in Dec 2015. In the absence of a cash repatriation scenario, we think AAPL could announce and sustain a ~$50B+ annual capital allocation program. Based on recent free cash flow generation ($24B in 1Q17) and projected cash generation ($57B in FY17E), this equates to ~90% of FCF (vs. 79% return in FY16). AAPL can increase its dividend by 15% to get its yield to ~2% and raise its buyback program to ~$35B annually (vs. FY16 $30B). — RBC Capital Markets analyst Amit Daryanani

Rivas reports, “Of course, Daryanani isn’t the only analyst to think an Apple dividend increase is in the works.”

Read more in the full article here.

MacDailyNews Take: We expect a 9-11% dividend hike this year.

After tax repatriation, we’d love to see Apple issue a special dividend to reward shareholders.

Get ready for up to 10.5% hike in Apple’s dividend – April 21, 2017
Analyst: Apple could double dividend, buy Netflix with repatriated cash under President Trump’s U.S. corporate tax changes – March 17, 2017
Apple’s real dividend yield is much higher than you might think – March 10, 2017
Apple preps to distribute dividends totaling $3.1 billion to shareholders – February 8, 2017


  1. Apple does not need shareholders to be viable; All it needs is loyal customers. Remember, investors are needed only by a new company looking for cash to expand. Apple is a thriving, wealthy company from which investors so investors are bloodsuckers who can only weaken Apple.

    Steve Jobs to acquisitive, disloyal investors, “§uck my di•k, fools.”

  2. I would like to see a special dividend paid out to shareholders, with increasing payouts going to those shareholders who owned Apple shares for longer periods, up to, say, 10 years. That would rewardling-term “faithful” over short-term profiteers.

  3. $3.00 per share per quarter.


    90% of profits, per share per quarter, and any company that does that pays no taxes no matter where the money in made. if there a big quarter no problem, this is based on percentages, not a fixed number which a company may have to reduce.

    1. IBM pays 1.5 dollars a share, Apple isn’t going to go beyond that anytime soon, what Apple should do is raise the dividend to .75 a share and eliminate buybacks, if you think Apple is a good investment buy in. if not buy Amazon and sweat out their bad fundamentals.

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