Apple poised to increase its dividend

Even though Apple returns even more cash to shareholders indirectly through share buybacks than it does via dividends, the company has increased its dividend every year for a decade, and it’s about to increase it again.

Daniel Sparks for The Motley Fool:

It has been a spectacular year for Apple (AAPL -0.62%) stock. Shares have soared more than 30% year to date. While the stock’s big gain has been the primary way the company has enriched shareholders this year, it utilizes another method to reward shareholders as well: dividends. In fact, the company has been paying dividends to shareholders every quarter for 11 years.

This is a timely topic this week, as the iPhone maker has made a habit of announcing dividend increases every year alongside its fiscal second-quarter earnings report, and Apple is scheduled to report results for this period on Thursday. Even more, the tech company similarly uses its fiscal second-quarter earnings report to provide an update on its share repurchase program (another way profitable companies return cash to shareholders, albeit indirectly).

It’s difficult to guess the amount Apple will increase its dividend by. Last year, its dividend rose 5%. Since this was the company’s lowest percent increase in its annual dividend yet, it could be concluded that a more robust dividend increase is likely this year. On the other hand, Apple reported negative growth in revenue and earnings in its most recent quarter, and more of the same is expected from fiscal Q2. With Apple’s business facing some

MacDailyNews Take: We’ll find out for sure after market close on Thursday, May 4th, but here’s our prediction:

We predict $90 billion in buybacks and a $0.24 per share dividend. – MacDailyNews, April 17, 2023

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