2023 marks eleventh consecutive year of Apple increasing its dividend to shareholders. Though AAPL’s dividend yield is low, its dividend payment will likely continue to grow annually for the foreseeable future.
Daniel Sparks for The Motley Fool:
While Apple’s financial performance for the period was impressive (particularly considering the macroeconomic headwinds the company is facing) there’s another facet of the update worth exploring: Yet another dividend increase from the tech giant. The dividend hike meant Apple added to its growing streak of increasing its dividend every year.
Apple will increase its quarterly dividend by 4%, management revealed in its earnings report on May 4. This new quarterly dividend comes out to $0.24, which equals $0.96 of dividends on an annual basis. This payout gives Apple a dividend yield of about 0.6%.
Though this is a small dividend, investors should note that the tech giant makes up for its small payout with prospects for continued dividend growth for years to come. Indeed, Apple has already demonstrated its ability to increase its dividend by raising it each and every year since its dividend was initiated in 2012.
MacDailyNews Note: Apple will pay this dividend on May 18th to shareholders of record as of the close of business on May 15th.
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There is little chance Apple will increase the dividend rate over time. Apple is basically doing what the big investors want and that’s stock repurchasing. Most of Apple’s cash will continue to go to buybacks each year. I think small retail Apple investors had better accept that strategy.
Tim Cook has said at a shareholders meeting in the past that they intend to raise the dividend yearly. He has also said that they believe that buybacks favor investors more than dividends. Apple has raised the dividend every year since they started paying dividends again. The reason that the dividend yield is so small is that the stock price has grown faster than the dividends. This is good news for long term stock owners. The buybacks have been successful.
Because buybacks were once considered manipulation, there were made illegal. Nothing has changed per their effect…they are still a stock hype ploy, benefit most the large share holders and appeal to Wall Street’s “approval.” Yes, BB’s have been “succcessful” in a EPS manipulation.
Well said, Wall Street coffee whiteness catalyst. 😉
I do not buy the wholesale Apple bot dogma outright, that is stock buybacks are GOOD.
Someone explain SPECIFICALLY how they are good, particularly for small investors like me, hmmm?
Others have said for years buybacks are a total waste of money. If buying back enough stock to take the company private is the goal, then what’s the problem for the world’s first two trillion, approaching three trillion dollar company?
Just askin’…
Some investors are getting 20%+ returns because they bought a long time ago and held.
Dividends and stock buybacks are just two ways for a company to return net cash flow profits to its shareholders. This is just Corporate Finance 101. Each has a different tax treatment. So, too does the much more questionable borrowing that Apple routinely does to pay…wait for it…dividends, stock buybacks, R&D, and operating costs. Apple is taking advantage of its high credit rating to get lower interest rates, but this takes the financing decision out of the hands of the shareholders. Apple thinks it knows better, but what it is really saying is that it’s days as a growth company are numbered and, more importantly, it can’t find productive ways to invest its net cash flow profits at a rate greater than its weighted average cost of capital.
Well, considering apple has done buybacks for decades AND continued to grow, your statement that they see their days of growth as over, is patently wrong.
Yeah, it’s true. Apple Scenic’s brain power is low, and is unlikely to grow over time
My increase in value above purchase price of my very long held AAPL stock is well over 57,000 percent. In the bottom line of increases in my stock value due to stock buy backs by Apple it is very likely of that over 57,000 percent the value has increased by less than 100% or 200%. So as far as I, and similar very long term stockholders, are concerned buybacks by Apple of AAPL stock are useless. Apple should either increase dividends or increase R&D.