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Apple (AAPL) announces a quarterly dividend of $2.65/share to begin in FQ4 of this year (July...

Apple (AAPL) announces a quarterly dividend of $2.65/share to begin in FQ4 of this year (July 2012) as well as a buyback program of up to $10B. (PR)
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Comments (29)
  • Senticar
    , contributor
    Comments (67) | Send Message
     
    lol wut?
    19 Mar 2012, 08:39 AM Reply Like
  • Ben Bernankes friend
    , contributor
    Comments (473) | Send Message
     
    My reaction as well.
    19 Mar 2012, 08:59 AM Reply Like
  • youngman442002
    , contributor
    Comments (5129) | Send Message
     
    OK...now that is over..can we get back to some news now..or is it all Apple all the time now...
    19 Mar 2012, 08:42 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2079) | Send Message
     
    Oh no a 0.5% dividend. Clearly this is the end of Apple. The only thing left is to see everyone who threatened to sell their stock if Apple was "stupid enough to pay a dividend" to actually sell.
    19 Mar 2012, 08:45 AM Reply Like
  • Stephen J Melnykevich
    , contributor
    Comments (1319) | Send Message
     
    it's actually 1.8%
    19 Mar 2012, 09:19 AM Reply Like
  • rudedog1
    , contributor
    Comments (96) | Send Message
     
    1.76%
    19 Mar 2012, 09:44 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2079) | Send Message
     
    You guys are correct.
    I was only counting the 1 announced dividend as we have yet to see a solid history of quarterly dividends paid out and a commitment to the current rate. Most often I see new companies test out a dividend and at this rate of a 7% payout ratio they are testing things. I would not be surprised if it was raised or even removed.

     

    But for the time being it is 1.8%ish.
    19 Mar 2012, 10:20 AM Reply Like
  • Stephen J Melnykevich
    , contributor
    Comments (1319) | Send Message
     
    Figured that is what you meant. I follow your comments Rhianni and you tend to give great insight and input.
    19 Mar 2012, 10:36 AM Reply Like
  • Regarded Solutions
    , contributor
    Comments (18972) | Send Message
     
    Why bother....just plow the money into growing the company.
    19 Mar 2012, 09:08 AM Reply Like
  • Apacheleadership
    , contributor
    Comments (61) | Send Message
     
    Stupid. Jobs is dead and the clowns turn it into MSFT. Get out.
    19 Mar 2012, 09:12 AM Reply Like
  • SaltyDog62
    , contributor
    Comments (791) | Send Message
     
    A nice conservative approach I think. Reward investors and strengthen the company. The yield annualized amounts to 1.8%
    19 Mar 2012, 09:22 AM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    So AFTER the shares go parabolic, the company does the buyback?

     

    Expect better.
    19 Mar 2012, 09:25 AM Reply Like
  • Stephen J Melnykevich
    , contributor
    Comments (1319) | Send Message
     
    Would you advise them to wait a year?
    19 Mar 2012, 09:52 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2079) | Send Message
     
    They have a 12 future P/E. Today is better then tomorrow for a buyback.
    19 Mar 2012, 10:21 AM Reply Like
  • Stephen J Melnykevich
    , contributor
    Comments (1319) | Send Message
     
    Completely agree, my comment to SoldHigh was one based on sarcasm.
    19 Mar 2012, 01:09 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2079) | Send Message
     
    My comment was targetted to soldhigh. I wish there was more then 1 indend level to show that here but I suppose I should have called out the name I was addressing. Sorry about that.
    19 Mar 2012, 01:17 PM Reply Like
  • Stephen J Melnykevich
    , contributor
    Comments (1319) | Send Message
     
    No need to, I knew you were directing towards Sold.

     

    I am intrigued by your comment further down in the thread. What are your thoughts on their apparent need for "new investors?" This could either be negative or positive.
    19 Mar 2012, 01:22 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2079) | Send Message
     
    They don't need to do secondary offerings so do not need new investor money so they must be going for a new type of investor.

     

    My guess is that since they have such a low amount of large fund investors they are wanting to attract that type of new investor. The new dividend and buyback program seems to support that. That might also explain why they do not want to do a stock split. Funds have money to pay big shares more so then retail investors. It also keeps the stock out of the range of some traders.
    19 Mar 2012, 02:23 PM Reply Like
  • Stephen J Melnykevich
    , contributor
    Comments (1319) | Send Message
     
    That is an excellent hypothesis. So very true, by the nature of the big money they achieve what Warren B. aimed to do which was to have less emotional shareholders and thereby less volatile stock prices.
    19 Mar 2012, 04:59 PM Reply Like
  • KISS_investor
    , contributor
    Comments (380) | Send Message
     
    children behave.

     

    the shares are parabolic because the ipad changed the whole tablet game with that screen.. it is truly their incredible screen vs everyone else..they even put a nice camera in!!

     

    the shares are parabolic because they are expanding more globally and even if china is not a perfect story it is a huge engine for them

     

    the shares are parabolic because so far the Tim Cook era has demonstrated investors have nothing to fear..

     

    the shares are parabolic because the enterprise market is just now starting to throw full support behind the apple closed system

     

    as far as the dividend
    They are basically saying they are going to plow their free cash flow back to shareholders, and if fcf increases the unspoken promise is more dividends to follow..

     

    i'm keeping my 6/16 in the money calls, and if any of you need a loan talk to me mid april...
    19 Mar 2012, 10:06 AM Reply Like
  • Apacheleadership
    , contributor
    Comments (61) | Send Message
     
    You don't understand the meaning of "parabolic", do you? Maybe you should take a math class and then use a different adjective to make your case.
    21 Mar 2012, 09:14 AM Reply Like
  • Senticar
    , contributor
    Comments (67) | Send Message
     
    You don't understand investing, do you? Just because a stock goes parabolic doesn't mean that the next step is chaotic downturn. The shares could level off quite easily. KISS_Investor didn't say anything like "The shares will continue to be parabolic", that's not possible. He merely stated some points why the stock is behaving this way currently.
    23 Mar 2012, 09:11 AM Reply Like
  • kingsmill
    , contributor
    Comments (156) | Send Message
     
    I believe I am correct in saying that the buyback gives them the right but not the obligation to purchase shares often used depending on market conditions and providing a trading floor. This dividend is significant money in your pocket with plenty of room to grow over time.
    Therefore more suitable for long term holders of the shares. Less reason to sell any shares and potential new owners who can't or don't buy stocks without dividends.

     

    How old do you have to be to get your first iPad? iPhone 12 anyone?
    And then there is TV. Steady growth worldwide and increasing dividends not too mention plenty of naysayers -- what's not to like.
    19 Mar 2012, 10:16 AM Reply Like
  • J.D. Welch
    , contributor
    Comments (1991) | Send Message
     
    Finally! I'm grateful. Shows they're interested in keeping shareholders' happy and sharing the wealth of the company with us "owners", rather than hording it. It's a nice start for a dividend. This extends my time horizon for how long I expect to hold my AAPL shares... Just need to see if they can continue to innovate beyond what I suspect Jobs left for them in their pipeline...

     

    :-)
    19 Mar 2012, 12:07 PM Reply Like
  • Spencer Knight
    , contributor
    Comments (416) | Send Message
     
    Interesting, AAPL's buyback is the same percentage of outstanding shares (based on the 932M at the end of 2011) as the dividend is percentage of share price. I didn't think AAPL needed a buyback, but it can't hurt to keep dilution in check. I wonder if a buyback will lead to a split in the future. It may seem counter intuitive but anything is on the table now.
    19 Mar 2012, 12:43 PM Reply Like
  • Stephen J Melnykevich
    , contributor
    Comments (1319) | Send Message
     
    The buyback is meant to offset the employee compensation.
    19 Mar 2012, 01:10 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2079) | Send Message
     
    An interesting note about what they said during the press conference. They are wanting NEW investors.
    19 Mar 2012, 01:03 PM Reply Like
  • KISS_investor
    , contributor
    Comments (380) | Send Message
     
    yep...

     

    for the first time they care about us...heh

     

    I saw another article that mentioned the fact the measured in dollars they are among the largest dividend payers in the US...

     

    this has been my thesis since late last year...it was a lucky break that ipad was not only terrific, but much more than terrific...

     

    you never know week to week what a stock is going to do, but apple will slowly grind upwards, and profit takers will be bought out by new investors looking to enhance growth in their yield oriented portfolios
    19 Mar 2012, 02:07 PM Reply Like
  • Mariano
    , contributor
    Comments (3) | Send Message
     
    "High-growth companies rarely offer dividends because all of their profits are reinvested to help sustain higher-than-average growth." In my opinion, It’s an outdated and somewhat inane concept that high growth companies shouldn’t pay dividends. Apple will decide to implement a dividend that has the potential to be grown over time.

     

    In relation to the buyback program, It seems there are no bargains in market for AAPL, so the best business for them is buy more AAPL.

     

    Last September I read in an article “about two-thirds of Apple’s cash is held overseas; the company might be more inclined to give some of it back to holders if Congress were to reduce the tax on corporate cash repatriation”. Does it have any relation with this news?
    19 Mar 2012, 04:42 PM Reply Like
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