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Apple raises dividend by 4.3% to $0.24, plans $90B stock buyback

May 04, 2023 4:33 PM ETApple Inc. (AAPL)By: Jessica Kuruthukulangara, SA News Editor142 Comments
  • Apple (NASDAQ:AAPL) declares $0.24/share quarterly dividend, 4.3% increase from prior dividend of $0.23.
  • Forward yield 0.58%
  • Payable May 18; for shareholders of record May 15; ex-div May 12.
  • The company also announced an additional program to buy back up to $90B of its stock.
  • Compared to its peers, Apple (AAPL) tops in dividend growth and safety, but lags in dividend yield:

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Comments (142)

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Growth-it-UP profile picture
We have a winner! ~ From 1 JAN 2023 ~ YTD

Final Balance...Return
1. AAPL - $13,079 30.79%
2. MSFT - $12,844 28.44%
3. SPDR S&P 500 ETF Trust - $10,918 9.18%
4. Vanguard 500 Index Investor - $10,912 9.12%

* $10K Invested in each *
Growth-it-UP profile picture
My Guru[s]
Source: CNBC Television
"Warren Buffett on Apple stake: Apple is a better business than any other we own"
-- www.youtube.com/...
retired@thebig50 profile picture
Anyone that bought Apple for the dividend needs to seriously rethink their investment strategy.
Love the 90 Billion buyback !!
BAHAMAS1 profile picture

I don't believe anybody with any sense bought AAPL for the Dividend.

However, with that HUGE AND GROWING cash hoard, the lousy $0.01/qtr increases are below average...imo.

It seems they spend the buyback $$$ to keep buffett happy.
retired@thebig50 profile picture
@BAHAMAS1 At least they are surpassing the inflation rate with the buybacks ..
BAHAMAS1 profile picture

I don't know what that means, other than the fact that the stock is up more than 33% YTD, which shareholders definitely have benefitted.

These Growth rates are obviously not guaranteed to continue, but Dividend rates, with the Growing CASH HOARD that AAPL has, are currently a MERE 0.55%, and that includes their new "raise".
Shareholders deserve more ...imo.
Cheap ass dividend payout!
Growth-it-UP profile picture
@172planejockey -- AAPL is not a stock to own for the dividend for it's common sense!
Here’s the problem with us old timer Apple owners. With it’s growth, selling is financial suicide if your bringing in 200 K a year, and then there are RMD’s which must be taken, selling Apple is almost pure capital gains, a nice dividend of 2 percent would be just fine and not break the company.
MathMan1959 profile picture

If you need some cash make your own dividend by withdrawing 2% or 3%.
BAHAMAS1 profile picture
Totally agree.
retired@thebig50 profile picture
@Connolt Fact is that Dividends are the most expensive method of retuning money to share holders. If you need income look elsewhere, or just harvest the shares you need as you need them..
I dont like the buyback because the stock is richly valueted. Some special dividend would make more sense.
bill h illify profile picture
“So the little got more and more”…👍
john.fAIrplay profile picture
Anyone complaining about the "paltry dividend" on a stock that's up 260 percent in 5 years and 935 percent in 10 years should stick with index fund investing. Clue-less.
Gprattalpha profile picture
@john.blockchain (aka Fairplay) I’m happy overall but I would like to know why the dividend raises aren’t at least high single digits. Sure the yield can suck because of price appreciation but the raises the last two years have been disappointing. Hopefully there’s a surprise coming in the next few years that will explain the buybacks over dividend growth. Because if there’s not a catalyst to move the stock higher the buybacks near all time highs have been a bust.

Long AAPL since 2012
Slate surfer profile picture
The most obvious reasons for buybacks now is that Apple wants to continue to juice their earnings per share.

Still, with Apple’s stock at an all-time high, share buybacks, in my opinion, are a less than prudent way to allocate capital.
@Gprattalpha - The only difference between divs and buybacks is the latter are tax efficient. Investors want to minimize their taxes so they do buybacks. Not every investor is limited to shares in an IRA.

The surprise that explains the buybacks is that most people –even Apple investors– don't understand the massive levels of FCF they're generating with their current products. The Mac is 40 years old and gets most of the profits of the entire PC industry.

$90B toward the dividend would have been so much better
@Dividend payer When the stock is 450-500 they might switch from buybacks to div :-)
@Dividend payer A higher dividend would be nice, but $90B buyback is a one time event...$90B dividend is a year after year event.
MathMan1959 profile picture

It’s not necessarily $90B a year. Average has been about $30B.
It’s acceptable to pay a pxss poor dividend yield but if you do, as a high flyer like aapl, increase the dividend by at least 10% yearly.

This “raise” of 4% after a 10% inflation year or a NEGATIVE raise, shows how much confidence little Timmy has in the future. Perhaps he’s counting on Lassie to come to his rescue, OR he wants all that money to go to “returns to shareholder buy backs”, where 20% can be redirected to mgmt (read Timmy’s) comp shares.
Mili21 profile picture
You can't expect both good dividend yield (raise) and stock price appreciation....especially from a company like AAPL....
Take stock price appreciation and take the dividends to buy other stocks you want in your portfolio.
If that happens going forward. law of Big Numbers eventually wins every time. And $90B buybacks is on a $2.64T company.
@Mili21 Apple is one of the VERY FEW companies that can afford to do both but choose not to. Not a shareholder-friendly company.
Enough!! Tons of cash and a few paltry pennies in dividends. Time to sell. Screw the buyback. I can get 4.6% on cash in all 4 of my portfolios.
Mili21 profile picture
@absolute truth
It's a free market...you can do anything with your own money,,,,
invest in AAPL or sell AAPL and buy something else...all up to you..
MathMan1959 profile picture
@absolute truth

I got a 73,000% return on my money while you were messing around with 4.6%.
Growth-it-UP profile picture
@absolute truth -- Now that's funny.....Your so smart ... "I got a 73,000% return on my money while you were messing around with 4.6%."
Dont spend the .01 all in one place!
We get 1 cent & CEO gets mega-millions
@breastdoc ridiculous dividend should be at least twice as much!
@cwsdist.pf - nah, I don't like taxes keep the buybacks coming!
@magenta17 @Lord TGO Investment @BAHAMAS1 @harbar67 @dynx @Steve Kean @sbally4 I'm confused why you seem to be ignoring the 90 B I L L I O N in buy backs. After AAPL retires all outstanding shares, there won't be any more buy backs to do so they can plow 90B into raising dividends each year. I encourage you to think long term
Bitzap profile picture
@dgi123 "After AAPL retires all outstanding shares"

I hope you are kidding. :-)
@dgi123 yes I own 15,000 shares of enbridge calculate 3.55 cdn per dividend no tax for Canadian citizens and go figure they have raised the dividend for 28 years straight
I figure if I live to be 80 years old i will collect easy 2 milllion alone just in dividends
BAHAMAS1 profile picture
Tim does a great job and runs a fantastic company.

However, I just wish he would please the SHAREHOLDERS with a better Dividend like he pleases buffett with the buybacks.
I feel like the stock is priced a little bit on the high side, I would have rather seen a bigger dividend increase. I guess it depends when they make their purchases.
Gould Capital profile picture
I like the buyback, $90B, the dividend increase is a little on the low side, I would have preferred a .02 raise or 8.7%. But, all in all, I'll take the $90B buyback and 4.3% raise.
With all their free cash, they couldn't have raised the divvy to a quarter? Thanks, AAPL! Longz!😀
Lol. Gotta love Apple. They raise dividend by 1 Penny/qtr….
BAHAMAS1 profile picture
Great earnings, but REALLY Tim ya couldn't make the Dividend $1...
@BAHAMAS1 he’s still paying for that U2 fiasco
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