Apple has reached another First…..charge on….
This is why Buffett is now the largest stockholder of Apple, he loves to
purchase stocks that pay him a cashflow to invest….personally I would have
loved for Apple to do as Buffett does, pay no dividend and let the Carl Icahn’s
of the world sit under a tree and eat a lollypop….just think of the amount of
cash the firm would have had…enough to buy most all of the tech world….just
saying.
John
Apple Hikes Dividend 10% to Become Biggest Dividend Payer in World
Apple announced a 10% quarterly dividend increase to 63 cents a share from 57
cents.
Amey StoneMay 2, 2017 5:20 p.m. ET
Apple (AAPL <http://www.barrons.com/quote/stock/AAPL>) missed analysts'
expectations when it reported second quarter financial results
<http://www.barrons.com/articles/apple-going-lower-fyq2-revenue-misses-q3-rev-view-misses-50-8m-iphones-misses-consensus-1493757329>
on Tuesday. The stock was down 1.5% in after hours trading.
But Apple met most investors expectations for a dividend raise. It announced a
10% quarterly increase to 63 cents a share from 57 cents.
That's exactly what Markit researchers expected
<http://www.barrons.com/articles/apple-expected-to-announce-another-10-dividend-hike-soon-1492542469>,
but less the the 15% increase forecast
<http://www.barrons.com/articles/will-apple-boost-its-dividend-and-buyback-program-1493653717>
by RBC Capital Markets' Amit Daryanani.
Howard Silverblatt, senior index analyst at S&P Dow Jones Indices notes that
Appple now pays out $13.22 billion each year, more than US Steel (X
<http://www.barrons.com/quote/stock/x>) is worth, to make it the largest
dividend payer in the world (It recovered that mantle from Exxon Mobil (XOM
<http://www.barrons.com/quote/stock/xom>), which hiked its dividend last week).
He notes:
The increase, if paid this month, also has the potential to set a new monthly
S&P 500 cash dividend record, at $51.6 billion, replacing the current $51.5
billion set in November 2016.
Apple continues to be the poster child for buybacks (replacing Exxon years
ago), as they have reduced their actual shares by 20.9% over the past four
years, and reduced their average diluted shares used for EPS by 20.5%.
Apple also announced another $50 billion in share buy backs, same as last year.
At current stock price, that will be a 1.74% yield. The dividend is payable on
May 18 to shareholders of record on May 15, 2017.
Apple has $257 billion in cash and $84.5 billion in long-term debt.
“With Apple's cash pile growing to over $250 billion, questions regarding
repatriation tax policies and buybacks return,” says Gerald Granovsky of
Moody’s Investors Service. “Expansion of the shareholder return program by $50
billion puts more pressure on the company to raise debt absent repatriation.”
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