Visa was one of Braden Dennis’ favorite companies, and he discussed how he likes to discover companies with high ROIC, which is actually a measure of how well the company’s management is doing (V).
Honestly, I’m a big fan of Visa, and I consider them my “favorite buy and own for eternity” company because of their strong ROIC and dividends.
Assuming that they are efficient investors, why is the company handing out money if they might have invested more and grown the business more quickly?
In terms of dividends, those are the two things I keep going back and forth on in my mind, and I know it might seem like I didn’t mention Apple at all, but trust me you’ll see where I’m going with it.
If you’ve been keeping track of the dividends Apple has paid over the years, you may have noticed a pattern.
Like JNJ & MMM, Apple has a strange history when compared to other companies I’ve studied.
Apple, on the other hand, is not a dividend-paying company at all.
Apple has paid a dividend every year since 1987 until 1995, when it went on a hiatus. The company resumed paying a dividend in 2012 and has continued to do so until today, September 2021, when they paid a dividend of $.22/share, or a yield of.58 percent.
Since when did Apple cease paying dividends?
Some people may not be aware of this, but Apple truly had some serious challenges to overcome when they first started out.
They were trying to compete with the big dogs, but they were short on funds.
Because Apple was a true disruptor (changing the world from CDs to MP3s), paying a dividend was out of the question. Such a corporation requires significant support from the company.
As a result, you’ll often see big tech businesses acquire other companies when they need to develop in a specific method rather than grow it organically.
If a competitor is doing a terrific job in an area that may benefit your company, it may be more cost-effective and efficient to acquire them.
Just buying the company will allow you to quickly benefit from the synergies that have been built up over time, rather than spending years and years attempting to catch up.
So, Steve Jobs wanted to keep some money in his wallet:
When it comes to purchasing a piece of the jigsaw to create something “large and bold,” he stated, “We know if we need to buy something, a piece of the puzzle, to produce something big and bold, we can write a check for it.” Insuring our financial future by keeping our money in the bank ensures us safety and freedom.
When Apple ceased paying dividends in the 1990s, the International Business Times ran a cool Q&A to explain why a corporation might wish to keep that cash in reserve.
You’ll miss a lot of information if you only look at the Apple Dividend History.
Here, you can see that the dividend is very steady until 1995, when it entirely drops off, and then rises up again in 2012::
What is Apple’s dividend per share?
In fundamental stock analysis, the dividend payout is a common way to gauge a company’s financial strength, but the dividend yield is more relevant to investors who are primarily interested in obtaining investment income.
Stock price appreciation is typically not a focus for dividend investors. dividend yield is the annual dividend divided by a stock’s current market value. As of the second quarter of 2021, Apple was paying out a dividend of $0.22 per share per quarter. Apple’s dividend yield was 0.6 percent as of July 18, 2021, when the company’s stock price was $149.39.
As a result, investors who are looking for a steady stream of dividend income may find Apple’s dividend yield to be less competitive than it was prior to the company’s 2012 dividend reinstatement.
Does Apple pay dividends 2021?
Ex-dividend date for Apple Inc. (AAPL) is November 5, 2021. On November 11th, 2021, shareholders will get a dividend payment of $0.22 per share in cash. In order to receive the dividend payment, AAPL shareholders must have purchased the stock prior to the ex-dividend date. AAPL has now paid the same dividend for the third consecutive quarter. The dividend yield is.58 percent at the current share price of $151.49.
Why is Apple’s dividend so low?
Because Apple’s new loan has a low interest rate. On the $2.5 billion of five-year notes, which carry a lower after-tax interest rate for Apple than the after-tax cost of the cash dividend that Apple pays its ordinary stockholders, particularly However, Apple is not able to deduct the dividend from its taxes.
Does Apple pay dividends monthly?
From 1987 through 1995, Apple paid a dividend, which was discontinued in 1995. As of 2012, Apple began paying a dividend for the first time in a decade, and it has steadily increasing its dividend thereafter.
COVID has not deterred Apple from increasing its quarterly payout by $0.05 ($0.20 per year), even in the midst of this. As of this writing, Apple’s dividend is nearly twice as high as it was in 2012.
In 2012, Apple relaunched its dividend program. As a result of the success of its iPod, iPhone and iPad, the business decided to resume its dividend program after 17 years of not paying out dividends to its shareholders.
In addition, a share repurchase program was begun by the company. To put it another way, Apple’s payout alone cost the company $2.5 billion per quarter in 2012. Shareholder dividends and stock repurchases totaled $45 billion, according to the corporation.
Apple now pays a dividend of $3.28 per year, which is divided into quarterly payments of $0.82. That yields a dividend yield of 0.85 percent, which is in the middle of the pack when it comes to technology stocks. The S&P 500’s dividend yield, by comparison, is slightly under 2%.
Are dividends paid monthly?
Although some corporations in the United States pay dividends monthly or semiannually, the majority pay quarterly. Each dividend must be approved by the board of directors of a corporation. The ex-dividend date, dividend amount, and payment date will then be announced by the corporation.
