Apple shares reach new peak as company gears up to pay investors $2.8 billion in dividends

Posted:
in AAPL Investors edited February 2015
Apple shares reached a new all time high of $108 for the end of October, less than two weeks prior prior to the company's quarterly dividend distribution date.

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On November 13, Apple will pay shareholders of record a quarterly dividend of $0.47 per share, but investors will need to have settled ownership of the company's stock by the market's close on November 10 in order to qualify.

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 will be the second to occur since the company issued a 7-for-1 stock split. That split also converted the dividend from $3.29 per share to 47 cents per share.

Following its stock split, Apple repurchased a surprising $17 billion of its own stock in the September quarter. The company now has 5.866 billion shares outstanding.

Apple shares outstanding Q4 2014


Since the start of 2014, Apple shares are up 34.75 percent, compared to Microsoft's 25.5 percent gain or Google's 0.13 percent decline in nonvoting GOOG C class shares and 1.24 percent gain 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.

AAPL Dividends & 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. Apple paid average share prices each month ranging from $96.77 to $100.64.
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Comments

  • Reply 1 of 25
    solipsismysolipsismy Posts: 5,099member
    It won't last. The Universe will eventually collapse in on itself so Apple's success is limited¡
  • Reply 2 of 25
    radarthekatradarthekat Posts: 3,494moderator

    "On November 13, Apple will pay shareholders of record a quarterly dividend of $0.47 per share, but investors will need to have settled ownership of the company's stock by the market's close on August 10 in order to qualify."

     

    ?This should indicate November 10 in order to qualify.  Also, the amount of the dividend disbursement is closer to $2.725b with the reduction in shares from this past quarter.  

  • Reply 3 of 25

    Makes me feel very sad to think of the things they could have done with all that money. Not just all the great new products they could have built, but all the lives they could have changed. Helped fight poverty in Africa, raised living standards for their workers in China, helped struggling families in America. All the good they could have done instead of wasting it on making already wealthy people even richer. Sad very sad.

  • Reply 4 of 25
    mubailimubaili Posts: 448member
    Can't wait to see the 2015 Q1 monstrous holiday number.
  • Reply 5 of 25
    paul94544paul94544 Posts: 1,027member
    Funny man ?????????????????????????????? Actually the universe will keep on expanding forever just like human stupidity

    solipsismy wrote: »
    It won't last. The Universe will eventually collapse in on itself so Apple's success is limited¡
  • Reply 6 of 25

    Usually around these times I start to see a lot of articles saying something like:  "Apple is at its peak, so is now the time to selld?"  What's odd is that I seldom see this type of article for other companies that are nearly profitless but somehow have super-high share prices and super-high P/Es like Netflix or Tesla.  It's always about how Apple is overvalued with a bubble-sized P/E.  Not Microsoft, mind you, but Apple.  There simply doesn't seem to be a sound metric for figuring out company value.  The way I look at it you buy a company if you think it's a solid company where it likely won't lose its value in the near term.  I don't know much about depending on growth potential with a company like Amazon.  It doesn't seem to be rewarding recent shareholders all that well.  I do think Apple has a few more good years left for the share price rise higher but that's just me.  Meanwhile, I just keep collecting those dividends every quarter whether the share price rises or not.

  • Reply 7 of 25
    Quote:

    Originally Posted by Constable Odo View Post

     

    Usually around these times I start to see a lot of articles saying something like:  "Apple is at its peak, so is now the time to selld?"  What's odd is that I seldom see this type of article for other companies that are nearly profitless but somehow have super-high share prices and super-high P/Es like Netflix or Tesla.  It's always about how Apple is overvalued with a bubble-sized P/E.  Not Microsoft, mind you, but Apple.  There simply doesn't seem to be a sound metric for figuring out company value.  The way I look at it you buy a company if you think it's a solid company where it likely won't lose its value in the near term.  I don't know much about depending on growth potential with a company like Amazon.  It doesn't seem to be rewarding recent shareholders all that well.  I do think Apple has a few more good years left for the share price rise higher but that's just me.  Meanwhile, I just keep collecting those dividends every quarter whether the share price rises or not.




    You again?

  • Reply 8 of 25
    flaneurflaneur Posts: 4,526member

    You again?

    That's a very different Odo you're prodding there. Apple has done the impossible and converted the Constable.
  • Reply 9 of 25
    flaneur wrote: »
    That's a very different Odo you're prodding there. Apple has done the impossible and converted the Constable.

    I can barely contain my delight. /s
  • Reply 10 of 25
    flaneur wrote: »
    That's a very different Odo you're prodding there. Apple has done the impossible and converted the Constable.

    I remember him being pro-Apple then he became very anti-Apple after the stock feel and then he became very pro-Apple after it rose again. He must have a lot of money tied up in AAPL (or have convinced mobsters to invest in AAPL) for his emotions to be vary so much based on natural variances in the market.
  • Reply 11 of 25
    slurpyslurpy Posts: 5,348member
    Quote:
    Originally Posted by Flaneur View Post





    That's a very different Odo you're prodding there. Apple has done the impossible and converted the Constable.

     

    Horse-shit. He just stopped his rants because he got what he wants, like a kid who stops whining because he got a piece of candy. Don't kid yourself, as soon as Apple's stock inevitably takes a dip, Odo will be right at it again, incessantly lecturing how Cook isn't fit to lead the company, asking for his head, and predicting complete catastrophe if that does not happen. He was amadant, throughout hundreds of his nasty, vile, vicious, ultra-confident posts against Cook, that the only way to fix the stock is to boot him out, and find some other (any other) random CEO to run Apple. After Odo was proven catastrophically, epically wrong, he has yet to pen a single word of apology, or take back a single word of what he said, as he lacks the integrity and character to do so. Why not "I was wrong, Tim is the right person for the job"? Or, "I made some pretty shitty assumptions"? Or anything? Nope.

     

    Apple's stock will eventually stagnate and take another dip- it's a natural cycle- and you can bet that this cretin will instantly start spewing out his anti-Cook tirades again. Like a child who finished his candy, and starts whining how they hates their parents because of that. That's the level of his uter shallowness, judging the performance of a leader simply by the current stock price, and willing to sacrifice the soul and long term of a company with the hope of getting a quick fix. 

  • Reply 12 of 25
    This was an excellent article. Keep up the good work.
  • Reply 13 of 25
    knowitallknowitall Posts: 1,648member
    "... Buybacks increase the scarcity, and therefore value, of Apple's stock by taking shares off the market and retiring them. ..."

    If only that was true.
    The problem is that the value of a share is volatile and can go up in smoke in a second.
    The best thing a public company can do is to go private (again).
  • Reply 14 of 25
    solipsismysolipsismy Posts: 5,099member
    knowitall wrote: »
    "... Buybacks increase the scarcity, and therefore value, of Apple's stock by taking shares off the market and retiring them. ..."

    If only that was true.
    The problem is that the value of a share is volatile and can go up in smoke in a second.
    The best thing a public company can do is to go private (again).

    It is true, and volatility of the stock market doesn't make it any less true.
  • Reply 15 of 25
    knowitallknowitall Posts: 1,648member
    solipsismy wrote: »
    It is true, and volatility of the stock market doesn't make it any less true.

    It isn't.
    Buying back shares increasess the 'scarcity' of the shares (although this hardly matters when you have trillions of shares) but it has no relation to the price of the shares, that's driven by a bunch of money grabbing, short minded, irrational, gambling, panic driven shareholders that can drive the share price down to zero in a few seconds.
    This is proven again and again and anyone denying it is delusional (and maybe even insane).

    Apple does risk driving down the share price in the longer run by buying back shares in this way because the psychological effect that prevents the shares to deflate now will be reversed in a much bigger way when Apple runs out of money after 4 years or so (Apple lost almost 10 billion last quarter ( 10 billion profit minus 18 billions loss of burning it's shares).

    The value of a share is that what you got for it, otherwise it's zero.
  • Reply 16 of 25
    Apple cannot afford to pay us taxes on its billions abroad, yet it can afford to pay dividends to shareholders.

    There would be no safe shipping if it weren't for our military and other infrastructure. Shame.
  • Reply 17 of 25
    irun262irun262 Posts: 121member
    sog35 wrote: »
    Ex Div date is Nov 6th

    You need to own the stock on Nov 5th to get the dividend

    What is WRONG with this site.  Every single quarter they get the dates wrong.

    It seems surprising to me that DED would get the dates wrong since he certainly must be an AAPL shareholder.

    I am new to stock ownership and this will be first dividend payment. I don't see any reason to sell in the near term.
  • Reply 18 of 25
    plovellplovell Posts: 819member
    Quote:

    Originally Posted by Constable Odo View Post

     

    Usually around these times I start to see a lot of articles saying something like:  "Apple is at its peak, so is now the time to selld?"  What's odd is that I seldom see this type of article for other companies that are nearly profitless but somehow have super-high share prices and super-high P/Es like Netflix or Tesla.  It's always about how Apple is overvalued with a bubble-sized P/E.  Not Microsoft, mind you, but Apple.  There simply doesn't seem to be a sound metric for figuring out company value.  The way I look at it you buy a company if you think it's a solid company where it likely won't lose its value in the near term.  I don't know much about depending on growth potential with a company like Amazon.  It doesn't seem to be rewarding recent shareholders all that well.  I do think Apple has a few more good years left for the share price rise higher but that's just me.  Meanwhile, I just keep collecting those dividends every quarter whether the share price rises or not.




    Apple's P/E presently is 16.74 - quite definitely in the middle range. Microsoft is 18.40. 

     

    Those dividends are nice indeed. 

  • Reply 19 of 25
    plovellplovell Posts: 819member
    Quote:

    Originally Posted by badika View Post



    Apple cannot afford to pay us taxes on its billions abroad...

    Keep in mind, though, that those billions were earned by "abroad money". Not by U.S. money. 

     

    That's worth remembering.

  • Reply 20 of 25

    You're kidding, right? Tens of thousands of expats and thousands of non-tax avoiding businesses pay taxes on money earned abroad. We believe we need governments to support us in doing business and in keeping us safe.

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