Must this article parrot a talking point of one particular party? One of the reasons that the 2003 tax cuts reduced the dividend rate was to eliminate the disparity between dividends and capital gains. The economic argument is that the corporation already pays taxes (up to 35%), so it makes sense to reduce the taxes that individuals pay on the dividends they receive from corporations. Otherwise, corporate earnings would effectively be taxed at up to 70%. As a result of the tax cuts, many individuals pay no taxes on dividends while others pay 15%. Those rates are the same that one would pay by selling the stock at a gain. The idea behind reducing the dividend rate was to encourage companies to pay dividends rather than stockpile cash, so that the cash could go back into the economy.
It depends on if it was sold ex-dividend. If yes, then yes, the "old" owner will receive the dividend. If no, then the "new" owner would receive the dividend, but the selling price would reflect that fact. The market knows how to handle these kinds of things.
That particular fact is not true. And yet it's a very common belief even among people in the finance field. But capital gains rates are tiered just like regular income tax rates.
Dilger doing his usual bang up job of inserting his own bias into every post. Nice.
I agree. This doesn't belong. But since it came up, the disparity, is intentional. Investors get a break on capital gains because it encourages investment and they are, after all, taking risk. My employer pays my income without risk. When I invest, I win some and I lose some.
No, I agree with SJ 100% - did you read my post? He never agreed with dividends, Cook does...is this clear for you?
At some point 'growth' hits the ceiling of large numbers, and a P/E less than 20 is an artifact of that. If you can't invest the money in the bank, and you're getting <1% Return on Cash, you're not stewarding your owner's money effectively. evolving to paying a dividend gives you 3 things as a stockholder.
1) income
2) increased interest in your stock, in that large funds that have income requirements will now recognize you as a component qualifier
3) cash to buy more Apple Stock ( or diversify into smaller companies).
You may say 'buy some other company.' I think it's hard to buy a company for > 10B, that aligns with Apple's core values and business plan. Big doesn't mean good. HP buying EDS, and now writing off over 8Billion is an example of that. Apple buys small (<1B), and only when they are extremely strategic (PA Semi, LiquidMetal, Siri, Poly9&C3), and not just to pad the revenue streams (which makes the AuthenTec deal intriguing).
Having 1/6th of your value in Cash (and growing) just seems to be a waste of capital. If Apple can't spend it to grow the company, it should spend it (in Dividends) to entice income investors into the mix.
I agree with not splitting the stock, not going whole hog and buying back stock to prop value (buying back stock to increase employee ownership is differend), and not
I still think the best thing to do is create a Apple Bank and link it to ITMS. Why pay transaction fees, when you can be a bank?
Wow I'm surprised at all these dividend questions from Apple fanboys. I recommend you learning how to invest rather than learning about dividends through the worst stock to get dividends from. There are much better stocks to 'buy and sell' just to get the dividend. You can probably earn the same (or better) on capital gains by day trading AAPL any given day.
A pathetic development for what has always been a growth stock - another proof that Cook is terrible visionary.
Wow. What incredible cynicism. Since the beginning of this year (2012), AAPL is up 55.9% (as of today's closing), with all of this growth done on Tim Cook's watch. Hmmm. Tell me, brlawyer, how many shares of AAPL do YOU own right now? That is, what skin do you presently have in this game? I have 5700 shares and will be earning (at minimum) $60,420 a year in dividends---while the stock grows like crazy (for at least the next 15 months, I'd wager). Funny, but it always seems that those who have only their opinions to fall back on have the loudest voices about what Apple should do with OTHER PEOPLE'S MONEY. Remember, the $117 Billion + in Apple's coffers does not belong to them. It is ours, the shareholders, and unless Apple plans to buy the entirety of the WinTel empire--in cash-- anytime soon, I want some of that money back.
Can somebody buy AAPL on monday, collect the dividend on Thursday and then sell the stock on Friday?
I've never held a dividend stock before. $2.65 per share doesn't seem like a whole lot though, to be honest. Somebody can make that per share in a few minutes, just trading AAPL on any given green day.
Can somebody buy AAPL on monday, collect the dividend on Thursday and then sell the stock on Friday?
I've never held a dividend stock before. $2.65 per share doesn't seem like a whole lot though, to be honest. Somebody can make that per share in a few minutes, just trading AAPL on any given green day.
The stock will be worth more per share before the dividend date than it will after. Investors are not dumb, they will realize the value of the stock went down after the dividend and take it down accordingly.
I can not wait for my first of many checks, can not retire on them but ever little bit counts.
For those who do not understand how this all works, first you have to be a holder of the stock for a longer period of time than a few days before an after other wise people would all try to buy and sell dividend stock before and after the dividend payout day all the time. If you only hold it for part of the period you get a prorated dividend. Also for those who think the stock drops equal to the dividend pay out that is not always true, some drop more and others continue to go up as you are seeing with Apple, not only are they paying a dividend your based investment continues to grow. Personally I like the stock that drop and maybe drop a lot as they pay out the dividend since I usually re-invest those dividend and I can buy at a lower cost and let the money ride. Apple stock price is not fully base on the money in the bank so their pay out has not really reflection on the value of the stock.
I personally have other investment that continue to pay dividend and the value of the investment continue to grow so you have to know the investment since they all do not react the same way
Also, to get the tax break you have to hold it more than a year otherwise the dividend will be treated as ordinary income and taxed according.
Wow I'm surprised at all these dividend questions from Apple fanboys. I recommend you learning how to invest rather than learning about dividends through the worst stock to get dividends from. There are much better stocks to 'buy and sell' just to get the dividend. You can probably earn the same (or better) on capital gains by day trading AAPL any given day.
True, but you have to factor in the price you paid for apple, in may case it was very lows so the return on invested capital with these dividend is pretty nice return on top of the unrealize capital gains. To you point it not worth buying apple at $600+ to reap a $2+ dividend. There are investment at $10+ per share paying 10%+ in dividends a years. So if you want a very good return on you money do not buy apple at this point. Apple is priced for the guy who have millions of $ to invest in one shot and can ride the ups and down and get a few extra $ in dividends on top of that.
What is the largest quarterly dividend a company has paid out? This seems pretty high. Note, I'm talking about a quarterly dividend not a one time dividend, but I'll take any info on the subject.
Stuck with billions they can't spend fast enough eh? They are more than welcome to pay off my debt. Out soccer stadium seats 24,000 people. My debt is less than that.
What is the largest quarterly dividend a company has paid out? This seems pretty high. Note, I'm talking about a quarterly dividend not a one time dividend, but I'll take any info on the subject.
Comments
Oh f'ing please. It's a growth stock that is highly manipulated and kept down.
Must this article parrot a talking point of one particular party? One of the reasons that the 2003 tax cuts reduced the dividend rate was to eliminate the disparity between dividends and capital gains. The economic argument is that the corporation already pays taxes (up to 35%), so it makes sense to reduce the taxes that individuals pay on the dividends they receive from corporations. Otherwise, corporate earnings would effectively be taxed at up to 70%. As a result of the tax cuts, many individuals pay no taxes on dividends while others pay 15%. Those rates are the same that one would pay by selling the stock at a gain. The idea behind reducing the dividend rate was to encourage companies to pay dividends rather than stockpile cash, so that the cash could go back into the economy.
Quote:
Originally Posted by ChiA
Does this mean that if somebody sold their shares today on Tuesday, they'll still be receiving a dividend on Thursday?
#next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }
#next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }
#next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }
It depends on if it was sold ex-dividend. If yes, then yes, the "old" owner will receive the dividend. If no, then the "new" owner would receive the dividend, but the selling price would reflect that fact. The market knows how to handle these kinds of things.
Quote:
Originally Posted by msimpson
Everyone pays the same rate on capital gains
That particular fact is not true. And yet it's a very common belief even among people in the finance field. But capital gains rates are tiered just like regular income tax rates.
Quote:
Originally Posted by SpamSandwich
WTF is this doing in this story?
Dilger doing his usual bang up job of inserting his own bias into every post. Nice.
I agree. This doesn't belong. But since it came up, the disparity, is intentional. Investors get a break on capital gains because it encourages investment and they are, after all, taking risk. My employer pays my income without risk. When I invest, I win some and I lose some.
http://investor.apple.com/dividends.cfm
Quote:
Originally Posted by brlawyer
No, I agree with SJ 100% - did you read my post? He never agreed with dividends, Cook does...is this clear for you?
At some point 'growth' hits the ceiling of large numbers, and a P/E less than 20 is an artifact of that. If you can't invest the money in the bank, and you're getting <1% Return on Cash, you're not stewarding your owner's money effectively. evolving to paying a dividend gives you 3 things as a stockholder.
1) income
2) increased interest in your stock, in that large funds that have income requirements will now recognize you as a component qualifier
3) cash to buy more Apple Stock ( or diversify into smaller companies).
You may say 'buy some other company.' I think it's hard to buy a company for > 10B, that aligns with Apple's core values and business plan. Big doesn't mean good. HP buying EDS, and now writing off over 8Billion is an example of that. Apple buys small (<1B), and only when they are extremely strategic (PA Semi, LiquidMetal, Siri, Poly9&C3), and not just to pad the revenue streams (which makes the AuthenTec deal intriguing).
Having 1/6th of your value in Cash (and growing) just seems to be a waste of capital. If Apple can't spend it to grow the company, it should spend it (in Dividends) to entice income investors into the mix.
I agree with not splitting the stock, not going whole hog and buying back stock to prop value (buying back stock to increase employee ownership is differend), and not
I still think the best thing to do is create a Apple Bank and link it to ITMS. Why pay transaction fees, when you can be a bank?
Wow I'm surprised at all these dividend questions from Apple fanboys. I recommend you learning how to invest rather than learning about dividends through the worst stock to get dividends from. There are much better stocks to 'buy and sell' just to get the dividend. You can probably earn the same (or better) on capital gains by day trading AAPL any given day.
Convenient.... this will just about pay for my new iPhone next month.
Quote:
Originally Posted by KPOM
...the corporation already pays taxes (up to 35%)...
Quote:
Originally Posted by brlawyer
A pathetic development for what has always been a growth stock - another proof that Cook is terrible visionary.
Wow. What incredible cynicism. Since the beginning of this year (2012), AAPL is up 55.9% (as of today's closing), with all of this growth done on Tim Cook's watch. Hmmm. Tell me, brlawyer, how many shares of AAPL do YOU own right now? That is, what skin do you presently have in this game? I have 5700 shares and will be earning (at minimum) $60,420 a year in dividends---while the stock grows like crazy (for at least the next 15 months, I'd wager). Funny, but it always seems that those who have only their opinions to fall back on have the loudest voices about what Apple should do with OTHER PEOPLE'S MONEY. Remember, the $117 Billion + in Apple's coffers does not belong to them. It is ours, the shareholders, and unless Apple plans to buy the entirety of the WinTel empire--in cash-- anytime soon, I want some of that money back.
Quote:
Originally Posted by Apple ][
Can somebody buy AAPL on monday, collect the dividend on Thursday and then sell the stock on Friday?
I've never held a dividend stock before. $2.65 per share doesn't seem like a whole lot though, to be honest. Somebody can make that per share in a few minutes, just trading AAPL on any given green day.
Typically, the expected value of that strategy, in an efficient market, is zero. The stock trades down mechanically at an ex-dividend price (http://www.investopedia.com/terms/e/ex-dividend.asp#axzz23YOQl7Lg) to reflect the money that left the company.
Quote:
Originally Posted by SpamSandwich
WTF is this doing in this story?
Dilger doing his usual bang up job of inserting his own bias into every post. Nice.
Yeah, I was wondering the same thing. Halfway through, it started to read like political propaganda....
But on the plus side, I did not notice any usual AI-style typos or grammatical errors, so I'll go with the flow...
deleted
Quote:
Originally Posted by Apple ][
Can somebody buy AAPL on monday, collect the dividend on Thursday and then sell the stock on Friday?
I've never held a dividend stock before. $2.65 per share doesn't seem like a whole lot though, to be honest. Somebody can make that per share in a few minutes, just trading AAPL on any given green day.
The stock will be worth more per share before the dividend date than it will after. Investors are not dumb, they will realize the value of the stock went down after the dividend and take it down accordingly.
I can not wait for my first of many checks, can not retire on them but ever little bit counts.
For those who do not understand how this all works, first you have to be a holder of the stock for a longer period of time than a few days before an after other wise people would all try to buy and sell dividend stock before and after the dividend payout day all the time. If you only hold it for part of the period you get a prorated dividend. Also for those who think the stock drops equal to the dividend pay out that is not always true, some drop more and others continue to go up as you are seeing with Apple, not only are they paying a dividend your based investment continues to grow. Personally I like the stock that drop and maybe drop a lot as they pay out the dividend since I usually re-invest those dividend and I can buy at a lower cost and let the money ride. Apple stock price is not fully base on the money in the bank so their pay out has not really reflection on the value of the stock.
I personally have other investment that continue to pay dividend and the value of the investment continue to grow so you have to know the investment since they all do not react the same way
Also, to get the tax break you have to hold it more than a year otherwise the dividend will be treated as ordinary income and taxed according.
Quote:
Originally Posted by elmsley
Wow I'm surprised at all these dividend questions from Apple fanboys. I recommend you learning how to invest rather than learning about dividends through the worst stock to get dividends from. There are much better stocks to 'buy and sell' just to get the dividend. You can probably earn the same (or better) on capital gains by day trading AAPL any given day.
True, but you have to factor in the price you paid for apple, in may case it was very lows so the return on invested capital with these dividend is pretty nice return on top of the unrealize capital gains. To you point it not worth buying apple at $600+ to reap a $2+ dividend. There are investment at $10+ per share paying 10%+ in dividends a years. So if you want a very good return on you money do not buy apple at this point. Apple is priced for the guy who have millions of $ to invest in one shot and can ride the ups and down and get a few extra $ in dividends on top of that.
Stuck with billions they can't spend fast enough eh? They are more than welcome to pay off my debt. Out soccer stadium seats 24,000 people. My debt is less than that.
Some foreign telecoms pay out pretty well.