Apple, Inc. shares reach new peak above $114 after paying investors $2.9 billion in dividends

Posted:
in AAPL Investors edited November 2014
Apple shares reached a new all time closing high of $114.18 today, following yesterday's quarterly dividend distribution of $2.9 billion to shareholders. That compares to a pre-split adjusted price just cents below $800, and is 53.5 percent higher than the company's stock price just one year ago.

AAPL MSFT GOOG Stock 2014


Since the start of 2014, Apple shares are up 42.46 percent, compared to Microsoft's 32.53 percent gain or Google's 2.75 percent decline in nonvoting GOOG C class shares and 1.02 percent decline in standard GOOGL A class shares. Google split its shares into the two classes and awarded investors one of each, effectively stripping investors of half their voting rights through the "dividend" dilution.

Apple's record high stock price allows the company to attract and retain top talent through stock based compensation.Apple's record high stock price allows the company to attract and retain top talent through stock based compensation

Stock prices can take irrational turns in the short term, such as when investors sent Apple's shares below $12 (split adjusted) in 2008 on fears that the company would lose its customers due to price sensitivity during the global economic downturn. After recovering the next year and reaching regular new highs through 2012, Apple shares again tanked in 2013 as pundits worried about the company's growth prospects.

Few are worried this year, as iPhone 6 models set new records while Macs reach their highest ever sales volumes, converting the company's PC growth from lower priced iPads into higher margin MacBooks and iMacs.

The company also launched Apple Pay to much fanfare, resulting in billions of dollars in free publicity as every major bank and many large retailers and restaurant chains in the U.S. have been constantly advertising iPhone 6 and Apple Pay features.

AAPL Dividends

Yesterday November 13, Apple paid shareholders its quarterly dividend of $0.47 per share across the 5.87 billion shares outstanding, a total payout of $2.9 billion. According to the 2014 U.S. dividend outlook report by Markit, Apple will narrowly beat out Exxon Mobil to be S&P's largest dividend payer of the year.

Apple has been paying its shareholders a dividend about a month and a half after the end of each fiscal quarter ever since it declared its modern dividend plan in the summer of 2012.

The November dividend is the second to occur since the company issued its 7-for-1 stock split. That split also converted the dividend from $3.29 per share to 47 cents per share.

Over the previous quarter, Apple has repurchased a surprising $17 billion of its own stock at average share prices ranging from $96.77 to $100.64.

AAPL Buybacks

Dividends are a minority portion of Apple's shareholder capital return program, the majority of which has been earmarked for buying back outstanding shares.

Buybacks increase the scarcity, and therefore value, of Apple's stock by taking shares off the market and retiring them. Removing shares from circulation also enhances the company's closely-watched earnings per share metrics.

Over the past year, Apple has paid out $11 billion in dividends to its shareholders, distributing about $2.8 billion every quarter. "The Company also plans to increase its dividend on an annual basis, subject to declaration by the Board of Directors," Apple states in its 10-K filing.

Apple has spent $68 billion on stock buybacks since initiating its capital return program, including an opportunistic $14 billion share grab initiated after the stock plunged more than 8 percent in January following the company's holiday Q1 release which detailed its highest ever quarterly revenues and operating profits--results that the tech media depicted as "disappointing."

Apple's most recent quarter of buybacks incorporated a record $8 billion in open market purchases and a fourth Accelerated Share Repurchase arrangement involving and additional $9 billion.
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Comments

  • Reply 1 of 48
    If I get out now, I would get a handsome return. But I don't think we've seen the end of the rally yet.
  • Reply 2 of 48
    shsfshsf Posts: 302member

    copy that Samsung. :smokey:

  • Reply 3 of 48

    Thank you Carl Icahn!

  • Reply 4 of 48
    sockrolidsockrolid Posts: 2,788member
    Could eventually become the first trillion-dollar company, in terms of market cap.
  • Reply 5 of 48
    Apple is doomed.
  • Reply 6 of 48
    sockrolid wrote: »
    Could eventually become the first trillion-dollar company, in terms of market cap.
    That could happen before the end of 2015.
  • Reply 7 of 48
    fallenjtfallenjt Posts: 3,976member
    If I get out now, I would get a handsome return. But I don't think we've seen the end of the rally yet.
    It will go to $170 and the first $1 trillion company.
  • Reply 8 of 48
    Quote:

    Originally Posted by fallenjt View Post





    It will go to $170 and the first $1 trillion company.



    According to what I've read recently, if you adjust the price of IBM in the early 70's for inflation, they hit 1.3 trillion back then. Apple would have to almost double to top that … but believe me, its better that way.

  • Reply 9 of 48
    Quote:

    Originally Posted by fallenjt View Post





    It will go to $170 and the first $1 trillion company.



    So. Much. Money.

     

    Why has no one made a GIF like this for the iPhone?

     

  • Reply 10 of 48

    Also, it's not mentioned, but thanks to the recent drop in Exxon's stock, Microsoft is now the second most valuable company. Nadella's gotten more movement of the stock in a few months than Ballmer did in more than a decade.

  • Reply 11 of 48

     




    Originally Posted by battiato1981 View Post

     



    According to what I've read recently, if you adjust the price of IBM in the early 70's for inflation, they hit 1.3 trillion back then. Apple would have to almost double to top that … but believe me, its better that way.


     



    Originally Posted by TheWhiteFalcon View Post

     

    Also, it's not mentioned, but thanks to the recent drop in Exxon's stock, Microsoft is now the second most valuable company. Nadella's gotten more movement of the stock in a few months than Ballmer did in a decade.




    DING!!!!  

     

    The new tech economy will swirl around mobile and cloud services to corp and individuals.  Nadella is driving MS that way, and being in Apple's Orbit.   Microsoft has realized that's how it got to number one... starting off in IBM's economic gravitation, and slingshotting to it's own galactic formation. It's a repeatable process.

  • Reply 12 of 48
    Quote:

    Originally Posted by TheOtherGeoff View Post

     



    DING!!!!  

     

    The new tech economy will swirl around mobile and cloud services to corp and individuals.  Nadella is driving MS that way, and being in Apple's Orbit.   Microsoft has realized that's how it got to number one... starting off in IBM's economic gravitation, and slingshotting to it's own galactic formation. It's a repeatable process.


    All depends on how much Bill interferes, as well as other things. I see Microsoft transitioning to more of an IBM role than a consumer facing role though.

     

    Meanwhile, little Google continues to decline. The media's starting to run the narrative that Glass is dead, Google's sent a lot of the key people packing, most developers have moved on, and you can find the thing for half-price on eBay now. Not to mention Sergey isn't wearing it anymore.

  • Reply 13 of 48
    flaneurflaneur Posts: 4,509member

    DING!!!!  

    The new tech economy will swirl around mobile and cloud services to corp and individuals.  Nadella is driving MS that way, and being in Apple's Orbit.   Microsoft has realized that's how it got to number one... starting off in IBM's economic gravitation, and slingshotting to it's own galactic formation. It's a repeatable process.

    Nice analogy. The black hole at the center is the human gravitational thirst for connected knowledge, i. e., Meaning.
  • Reply 14 of 48
    blazarblazar Posts: 270member
    Aapl at 150 would pay for my mcmansion... However the ongoing dividends are attractive. It's hard to know what to do with apple if it were to get to around 150.

    If everyone is wearing and USING their iwatch then that could be a huge growth area among gadget lovers. Also obviously the proportion of folks that buy the "high end" watch versions also matters.

    I watch could end up driving iphone sales all the way through iphone7.

    Do NOT underestimate how good the apple watch will FEEL. The iphone 6 is impressive and smooth/light to the touch which really makes me like it. Ive is no idiot and knows that the tactile nature of the watch is what will make it sell.

    My wife will ping me with that watch all time i bet. She will defintely love to use it. You get the women to love it, and the guys will have no choice but to buy it for themselves too.
  • Reply 15 of 48
    Originally Posted by blazar View Post

    Do NOT underestimate how good the apple watch will FEEL.



    I dunno. It’s pretty thick.

  • Reply 16 of 48
    The numbers are mind boggling. Apple is really good at making a lot of people a lot of money.

    Oh yeah, they make great products too.
  • Reply 17 of 48
    flaneur wrote: »
    Nice analogy. The black hole at the center is the human gravitational thirst for connected knowledge, i. e., Meaning.

    Speaking of black holes, make sure you see the movie "Interstellar" this weekend in an IMAX theater... Wow, what a movie!
  • Reply 18 of 48
    All depends on how much Bill interferes, as well as other things. I see Microsoft transitioning to more of an IBM role than a consumer facing role though.

    Meanwhile, little Google continues to decline. The media's starting to run the narrative that Glass is dead, Google's sent a lot of the key people packing, most developers have moved on, and you can find the thing for half-price on eBay now. Not to mention Sergey isn't wearing it anymore.

    Glass was DOA. It just took them this long to catch up.
  • Reply 19 of 48
    dcj001dcj001 Posts: 301member
    Quote:
    Originally Posted by blazar View Post



    Aapl at 150 would pay for my mcmansion... However the ongoing dividends are attractive. It's hard to know what to do with apple if it were to get to around 150.



    If everyone is wearing and USING their iwatch then that could be a huge growth area among gadget lovers. Also obviously the proportion of folks that buy the "high end" watch versions also matters.

     

    If everyone is wearing and using their what?

     

  • Reply 20 of 48
    shsfshsf Posts: 302member
    Quote:

    Originally Posted by SpamSandwich View Post





    Glass was DOA. It just took them this long to catch up.



    exactly, larry page just managed to look like a dick at his own wedding. 

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