Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
Shauna O'Brien Apr 28, 2015
Over the last couple months, Apple (AAPL ) has been stealing the spotlight on both Wall Street and Main Street. The $760 billion tech giant saw a record number of iPhone sales when it released the iPhone 6 and iPhone 6 Plus in September, extreme excitement over the newly released iWatch and plenty of investor attention when the company became the first $700 billion company, and then the first $750 billion company.
In addition to all of the big news, Apple also became a member of the Dow Jones Industrial Average in March, creating even more attention from Wall Street. In today’s newsletter, we will overview Apple’s latest earnings release.
For additional insight, check out: How Does Apple Stock React to Product Releases?
Apple also reported that it has boosted its dividend by 11% from 47 cents to 52 cents quarterly, or $2.08 on an annualized basis. This is the company’s third dividend increase since it began paying a regular dividend in 2012.
Although the company has been raising its dividend on an annual basis, its 1.5% dividend yield has done little to impress income investors, especially considering that the company’s enormous cash load. Still, its important to watch the world’s largest corporation as it continues to absorb market value and grow.
To increase shareholder value further, Apple has increased its buyback authorization to $140 billion from the $90 billion authorization last year.
Towards the end of 2012 and into 2013, shares of Apple took a sharp decline, leaving many investors wondering how far the stock had to fall. By mid-2013 shares started to rise, and continued to rise as the company became more and more exciting. The stock is up over 50% in the last 12 months, and is a lot more reachable for retail investors due to its 7-for-1 stock split. The stock is also now part of the Dow 30, an index which many investors have mixed feelings about.