Apple Inc. shares approach ex-dividend as it gears up to distribute $2.8 billion to shareholders [u]

Posted:
in AAPL Investors edited February 2015
On February 12, Apple will pay shareholders of record a quarterly dividend of $0.47 per share, but investors will need to buy shares by February 5th (to have settled ownership of the company's stock by the market's close on February 9) in order to qualify.

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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 February dividend will be the third 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 and an additional $5 billion of stock in open market purchase during its December quarter (Apple's Fiscal Q1 2015). The company now has 5.825 billion shares outstanding.

Apple shares outstanding Q1 2015


Since the beginning of 2014, Apple shares are up 48.28 percent, compared to Microsoft's 11.56 percent gain or Google's 5.25 percent decline in nonvoting GOOG C class shares and 4.73 percent loss in standard GOOGL A class shares.

Since the start of 2015, Apple shares are up 7.49 percent, compared to Microsoft's 10.43 percent loss or Google's 0.54 percent gain in nonvoting GOOG C class shares and 0.5 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.

Apple MSFT GOOG Q1 2015

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.

Capital Return AAPL Q1 2015


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 last four quarters, Apple has repurchased $45 billion worth of its stock off the market or via accelerated repurchase programs.

The repurchase of shares has slightly reduced the total dividend Apple pays. While the company reports $2.8 billion in dividend payments for FQ1, at $0.47 per share the 5.825 billion shares outstanding would appear to total $2.73 billion, a $70 million reduction over the previous quarter's dividends.

"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.

Over the past calendar year, Apple has paid out $11 billion in dividends to its shareholders, distributing about $2.8 billion every quarter, although that number is dropping in tandem with buybacks.

Apple's volume of stock buybacks have also now reached the 5 percent threshold to qualify for inclusion in the "NASDAQ BuyBack Achievers Index," as well as the PowerShares Buyback Achievers Portfolio, as noted in a report by ETFtrends.

In total, Apple has spent $72.9 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 last 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."

Combined with dividend payments and net share settlements, Apple has spent $102.7 billion on capital return since mid 2012, but still holds over $178 billion in cash.
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Comments

  • Reply 1 of 22
    The ex-dividend date is FEBRUARY 5th NOT Feb 9th. Fix the article please
  • Reply 2 of 22
    Additionally, they're gearing up to give a 2.73 billion dividend. Though since April last year every media headline has gotten this subtly wrong. Thanks to the buy-back 0.47c a share x 5.825 billion shares = 2.73.

    It's nit-picking I know. But that is 70 million dollars they just saved.
  • Reply 3 of 22
    irun262irun262 Posts: 121member
    iobserve wrote: »
    The ex-dividend date is FEBRUARY 5th NOT Feb 9th. Fix the article please

    Which means shares must be purchased/owned by sometime tomorrow (the day BEFORE ex-dividend date). The first time I owned AAPL stock I misunderstood and was one day too late and missed out.
  • Reply 4 of 22
    radarthekatradarthekat Posts: 3,150moderator
    I think the share count is incorrect. The 5.82 billion shares outstanding was prior to the announcement that Apple repurchased 46 million shares and retired another 8 million through accelerated repurchase contracts. So that means there should be 5.766 billion shares outstanding.
  • Reply 5 of 22
    Clarified the dates and dividend math (Apple reports $2.8B for FQ1), and added a link forwarded by Jim Neal about Apple entering the buyback ETF.
  • Reply 6 of 22

    JUST TO MAKE THINGS CLEAR YOU MUST OWN THE STOCK BEFORE 4pm TOMORROW IN ORDER TO QUALIFY FOR THE DIVIDEND AND NOT MISS OUT.

  • Reply 7 of 22
    Thanks for the update! Now I sound like a whiney jerk, hahaha
  • Reply 8 of 22
    MacProMacPro Posts: 18,456member
    iobserve wrote: »
    Thanks for the update! Now I sound like a whiney jerk, hahaha

    Usually the mods remove a post leading to a correction so you don't get left like that.
  • Reply 9 of 22
    Quote:

    Originally Posted by iRun262 View Post





    Which means shares must be purchased/owned by sometime tomorrow (the day BEFORE ex-dividend date). The first time I owned AAPL stock I misunderstood and was one day too late and missed out.

     

    Yeah you missed out on giving somebody your money, and having that money handed back a day later, taxed at ordinary income rates.

     

    Stock buyback is a better deal, tax is basically deferred until you realize your gains.

  • Reply 10 of 22
    fallenjtfallenjt Posts: 3,982member
    Quote:
    Originally Posted by P PRG View Post

     

    JUST TO MAKE THINGS CLEAR YOU MUST OWN THE STOCK BEFORE 4pm TOMORROW IN ORDER TO QUALIFY FOR THE DIVIDEND AND NOT MISS OUT.


    So you must buy stocks today at the record high price to get $0.47/share and it will drop more than that amount after the paid day. Great investment huh.

    The paid dividend date is Feb 12. That means you must own stocks before Ex-dividend date which is 2 business date before record date which usually is 3 days before the paid date. So you do the math. Feb 12 - Feb 9 -  Feb 5 (since Feb 7-8 are none business days). Well, as you know, the stock price will drop by the same or more the amount of dividend paid out to offset it and prevent people buy before ex-dividend and sell right after.

    By the way, drop the CAPs. We all can read message here.

  • Reply 11 of 22
    razorpitrazorpit Posts: 1,074member
    Quote:

    Originally Posted by fallenjt View Post

     

    So you must buy stocks today at the record high price to get $0.47/share and it will drop more than that amount after the paid day. Great investment huh.

    The paid dividend date is Feb 12. That means you must own stocks before Ex-dividend date which is 2 business date before record date which usually is 3 days before the paid date. So you do the math. Feb 12 - Feb 9 -  Feb 5 (since Feb 7-8 are none business days). Well, as you know, the stock price will drop by the same or more the amount of dividend paid out to offset it and prevent people buy before ex-dividend and sell right after.

    By the way, drop the CAPs. We all can read message here.




    If you're in it for the $.47 then ya it's a bad idea.  However if you believe the stock is under valued then buying at (currently) $119.57 is a steal!

  • Reply 12 of 22
    fallenjtfallenjt Posts: 3,982member
    Quote:

    Originally Posted by razorpit View Post

     



    If you're in it for the $.47 then ya it's a bad idea.  However if you believe the stock is under valued then buying at (currently) $119.57 is a steal!


    I believe the stock was undervalued and I bought them at $106 2 weeks ago. I would say it will be at $120 for a while.

  • Reply 13 of 22
    heliahelia Posts: 170member

    Thanks DED, though seems kinda some short version! :)

  • Reply 14 of 22
    shsfshsf Posts: 302member

    How does one get to buy apple shares in Europe, is it via the German stock exchange?

  • Reply 15 of 22
    THIS INFORMATION is not correct. To get the Dividend you cannot buy the stock on the 'X' day which in Apple's case is 2/5, today. You must own the stock before the 'X' day. You may sell it on the 'X' day and get the dividend but must own it before then.
  • Reply 16 of 22

    SEE MY PREVIOUS STATEMENT. THE INFORMATION HERE IS NOT CORRECT. You cannot buy a stock on the "X" day, which in apple's case is today, 2/5/, and get this dividend. You must own the stock before the 'X' date. You may sell it on the 'X" day and get the dividend but must own it before then.

    So, If this writer doesn't know this basic factg, I would question all the other material he writes as to stocks.

  • Reply 17 of 22
    I bought several hundred shares in 1989 and have been smiling ever since. My wife was criticizing the decision at the time, not so much now.
  • Reply 18 of 22
    Quote:

    Originally Posted by lanceh5 View Post



    I bought several hundred shares in 1989 and have been smiling ever since. My wife was criticizing the decision at the time, not so much now.

     

    Good move on your part.

  • Reply 19 of 22
    irun262irun262 Posts: 121member
    razorpit wrote: »

    If you're in it for the $.47 then ya it's a bad idea.  However if you believe the stock is under valued then buying at (currently) $119.57 is a steal!

    Excellent way of looking at it!

    AAPL will definitely go higher, but it is not clear when. When I first owned AAPL stock I thought I would be able to guess when it would go up and when it would go down. I was wrong. It's best just to own it and not trade it.

    Apple has many good things in the pipeline.
  • Reply 20 of 22
    razorpitrazorpit Posts: 1,074member
    Quote:
    Originally Posted by fallenjt View Post

     

    So you must buy stocks today at the record high price to get $0.47/share and it will drop more than that amount after the paid day. Great investment huh.

    The paid dividend date is Feb 12. That means you must own stocks before Ex-dividend date which is 2 business date before record date which usually is 3 days before the paid date. So you do the math. Feb 12 - Feb 9 -  Feb 5 (since Feb 7-8 are none business days). Well, as you know, the stock price will drop by the same or more the amount of dividend paid out to offset it and prevent people buy before ex-dividend and sell right after.

    By the way, drop the CAPs. We all can read message here.


     

     

    Quote:
    Originally Posted by razorpit View Post

     



    If you're in it for the $.47 then ya it's a bad idea.  However if you believe the stock is under valued then buying at (currently) $119.57 is a steal!


     

    Well a week has passed, and the stock has gone up $4.63.  Will there be a rainy day?  Some day, but I think we'll see a lot more success before that day comes...

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