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AAPL Stock: 118.75 ( -0.25 )

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Apple to issue $3.05 per share on Thursday in latest dividend

updated 09:01 pm EST, Wed November 13, 2013

Nearly $3 billion 'returned' to shareholders in latest payout

If you held any AAPL stock as of last Wednesday, your account is going to get a little boost tomorrow. Apple will be paying $3.05 per share to "shareholders of record" as of November 6 in the latest quarterly dividend, which arrives tomorrow and totals nearly $3 billion, a 15 percent rise from the year-ago quarter. While the amount Apple has paid out has gone up over the last few quarters, the company has actually saved billions in stock buybacks.

Across 2013, Apple undertook an ambitious stock repurchasing program that retired some 46.4 million shares, saving the company $143 million in payouts this quarter alone. While the buyback program spent $21 billion in buying back the shares, the rise in the stock price since then means that Apple would have spent an additional $3.1 billion if it tried to buy the shares back now. Celebrity stock shark Carl Icahn has been pushing Apple to expand the buyback program further, without success thus far.

The company's current dividend yield is 2.35 percent, based on a share price of around $520. While the dividend reduces Apple's cash holdings, the company continues to add revenue faster than it can give it out, resulting in an increasing value while the buyback program makes the stock slightly more scarce and therefore more valuable. The slow but steady rise in AAPL's price since the dividend was increased would seem to support the idea that dividends plus buybacks, on top of the company's solid fundamentals, is increasing the value of holding AAPL for shareholders.





by MacNN Staff

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Comments

  1. iphonerulez

    Dedicated MacNNer

    Joined: 11-28-08

    Considering Apple's share price has totally stagnated, it's the least Apple can do in order to give back something to shareholders. The company's stock has been in a hole for all of 2013 while the rest of the stock market has risen around 20%. Tim Cook isn't doing a damn thing for shareholders considering the amount of revenue and profits the company makes. Those buybacks have been completely useless in raising Apple's share price and the EPS hasn't risen much either. Apple honestly needs to get someone who can manage Apple's finances in order to increase its value to everyone concerned.

  1. Charles Martin

    MacNN Editor

    Joined: 08-04-01

    Your comment is demonstrably false. While the stock is currently priced around the same price as it was at the beginning of the year, it has certainly not been stagnant.

    In the intervening months, it has fallen to just below $400 and climbed back to around $520 and on a generally upward path -- a fluctuation of about 25 percent. While that's not what everyone would want, I think you've confused AAPL for MSFT, which in fact has been stagnant -- it has been trading for between $25 and $35 for the past **14 years**. During that same period, AAPL has increased 2,000 percent -- would you call that "stagnant?"

    But let's just look at how the stock has done since Tim Cook officially became CEO back in August 2011. Oh look, it's up 35 percent. That is, for those of you keeping score, also not "stagnant." I think the real problem here isn't Cook, it's that you clearly don't understand what the word "stagnant" means.

    "Tim Cook isn't doing a damn thing for shareholders considering the amount of revenue and profits the company makes." Silly me, thinking Cook's job was to ensure that Apple continues to make high-quality products that consumers love and which advance the art and science of electronics and modern life.

    Of course I'm wrong -- his job is to enrich sharevultures and nothing else. I have to point out that the very article you're commenting on mentions that the company is about to pay out ANOTHER $3 billion to shareholders (I believe this is the fifth or sixth quarter they've done so, so that's what $15 billion or so?) on top of long-term growth that has made it the most valuable company in the entire world. This is on top of a share buyback program that has "returned" $21 billion. It may not be enough for sharevultures like you, but it is provably false and fatuous to say Cook "hasn't done a damn thing for shareholders."

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