Apple CEO leaves investors in suspense on future dividend hike

“Apple CEO Tim Cook is leaving shareholders in suspense about whether the iPhone maker will use its windfall from a tax cut on overseas profits for a big boost to its quarterly dividend,” The Associated Press reports.

Responding to a shareholder’s question about a dividend increase, “Cook said Apple’s board intends to raise the dividend in April, but he didn’t provid[e] specifics,” AP reports.

“Investors have been anticipating a substantial dividend increase since Apple announced plans to take advantage of a temporary tax break championed by the President Donald Trump to bring an estimated $245 billion in overseas cash back to the U.S.,” AP reports.

Read more in the full article here.

MacDailyNews Take: As we expected.

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Analyst: Apple’s repatriated cash ‘front and center’ tomorrow – February 12, 2018

12 Comments

  1. Hey, Tim, don’t leave us hangin’. I’m only asking for a little more than the usual yearly dividend increase. I don’t see how that’s too much to ask. If Microsoft can manage to give shareholders a 1.87 dividend yield with 7.70B outstanding shares, then Apple should be able to afford that yield with only 5.07B outstanding shares. Maybe that’s a good reason Microsoft has a 75% institutional investor percentage compared to Apple’s 62% institutional investor percentage. I’m just wondering what Apple is going to do with all that money. Are they just going to stash it in an American mattress instead of an overseas one?

    1. MSFT pays 1.68 * 7.7B = 12.93B paid out
      AAPL pays 2.52* 5.07B = 12.77B paid out
      So sure, AAPL can definitely afford a better dividend. I’d like to see $4 which would make a yield of 2.4% today but rising price would soon reduce that. However, that would be a 59% increase when they usually only bump 10%.

  2. No reason why Apple should give its money away to undeserving gamblers. Apple does not need to reward gamblers and bloodsuckers with dividends and stocks. They are wasted. I recommend saving it or investing it some egalitarian way.

    1. While I definitely agree they are gamblers, they are owners, and it’s their money.

      Maybe Apple should set up an “Apple Money Store” for approved use of funds. Curated and non-democratic, exactly as you suggest.

    2. GAMBLERS? I invested in the company, bought a piece of the company with my OWN money. Since, I’m an OWNER I should share in the profits.

      Only liberal idiots like John Dingler think we should give to bloodsuckers who want/expect/demand free stuff.

    3. Are you saying it’s a GAMBLE to invest in Apple?

      Sure, it is/was a risk, but a calculated one and as part of a diversified portfolio, not a gamble, but a manageable risk.

      You must be one of those people who prefer GICs that pay lower than inflation interest. People who invest actually have MORE confidence in the companies to perform well… except for hedge funds… those are the real bloodsuckers that profit off losses.

  3. like dave, i bought apple with my own hard earned cash (in 1997 @ $12/share). i don’t really need a check for $0.57 a share (or whatever). what i would like to see is apple establish a DRIP (Dividend ReInvestment Program). instead of a check for a little bit of cash, i’d rather they take that money and let me purchase portions of shares. i’ve no intention of ever selling my stock. i bought it because i wanted to own a piece of the company.

  4. It wasn’t all that exciting. Tim Cook said that, like always, the board sets the dividend in April, probably announced in May. He did make some news by strongly downplaying the notion of a special or one time dividend. Some have mentioned this as a hope, but I don’t think there was ever much chance of this.

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