Concurrent with the second quarter of fiscal 2023 results published in early May, Apple declared a new quarterly payout of $0.24 per share. This dividend raise shook out to a 4% improvement on its $0.23 per share predecessor.
Eric Volkman for The Motley Fool:
All things being equal, [top dividend] stocks produce regular dividend income that yields at, or above, the average of a representative group of dividend payers. These days, the average yield of the S&P 500 index sits at just under 1.7%. It also helps greatly if the company enacts a dividend raise at least once every year.
The companies most readily identified with dividend stocks also tend to be well-established ones with modest growth but very strong and reliable free cash flow (FCF).
So does Apple fit this bill? Well, not entirely. That FCF sure is mighty… As for yield, that’s a different story. Strictly on that basis, Apple isn’t very impressive. Its yield is a rather light 0.6% these days, well under the aforementioned S&P 500 benchmark…
I’m an Apple stock owner myself, and for me, it’s never been about the dividend — and likely never will be. Instead, I’m excited about the numerous growth opportunities the tech giant has in front of it, and the payout is just a little sweetener in my eyes. I suggest you look at the stock the same way.
MacDailyNews Take: Apple is a growth stock. You own it for growth (and the current support of huge buybacks), not the dividend.
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apple has some much money they are starting a bank. I thought Steve was going that direction when he didn’t offer dividends. anyway. Apple pay 1 dollar per share per quarter to the owners of the company. that will send the stock thru the roof. Billionaire don’t care, like Warren, they borrow against the stock. lent money spends like any other money.
Apple is starting a bank? Is that a rumor?
As for dividends, the stock buyback program in a way acts as an untaxed (or capital gains taxed) dividend.
Nonsense. Buy backs can be taken away. Apple buys back shares, the price might go up. A feckless market can drive the price right back down again. Has happened many times.
A dividend is mine once paid. No one can take it back. I can put it in the bank and earn interest on it.
Buy backs are for those too stupid to know the difference.
Until I see some hard data that buybacks do anything I think you’re right. Apple is up ~$50 since the beginning of the year, buybacks had nothing to do with that. In the meantime we keep getting this BS about Apple raising their dividend by 4%, they raised it by 1 cent per share MDN, it’s pathetic, let Apple do their own spinning.
Buybacks reduce the number of shares outstanding, which obviously increases the profit per share. Also, 1 cent is ~4%. Why do you think that’s “spinning”?
What does an increase in profit per share have to do with an increase in the value of my shares or my dividend payout? It doesn’t. Having scrupulously tracked the value of my shares I know that the vagaries of the market have played an outsized role in the stock price while massive buybacks have not had an apparent effect.
“Apple is raising its dividend by 1 penny per share” or “Apple is raising its dividend by 4%”, you see how the latter sounds like BS compared to the truth of the former?
funny odd, why is apple paying 4.x % on money.
it’s almost like apple will pay anybody else but its stockholders.