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Apple's Raise
#1
I guess my initial reaction to Apple's announcements is mixed. I think the dividend raise is a little on the lean side, all things considered. As I calculate it, 2014 will have $12.92 in dividends, compared to $11.80 for 2013. That is an increase of 9.49 percent. Not bad at all, but considering AAPL's cash pile, huge cash flows, and low payout ratio, I'd have liked to see a little stronger raise. I understand this may have been tricky given how much cash is held overseas, though.

The buyback increase -- from 60 billion to 90 billion -- could play out a number of ways. If it brings the share count down in a meaningful way, it could be a solid move, but is certainly less direct than a larger dividend raise.

The 7:1 stock split in my opinion is very welcome and long overdue. Of course I understand that on one level it is just hocus-pocus and does not change anyone's financial position. But I also know that some studies show that stocks tend to perform well after splits. And I know that there is a lot of opinion and emotion around AAPL's share price, and that it has been range-bound for a long time now. With luck, the split will act as a bit of a reset, and folks will stop obsessing over whether or when the price will repeat its high over $700.

Overall, I'd say that it is a nice set of announcements. And I'm looking forward to new products and excitement about the company in the second half of the year.

EDITED TO ADD:

Huh. Just did a little math. The new dividend is a round multiple of seven (3.29 divided by 7 is .47). I'm sure that's no coincidence.
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#2
Significantly Apple announced the intention to increase the dividend each year going forward.
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#3
Owning, and Have since '95 im loving what is happening here. Now if we could (and I am sure we will) see a bounce it would be a great boost to the cash acct to purchase yet other stuff.
I am happy with my purchase way back when and ALL the numbers look good to me.
I remember the berating I took from several ppl when I bought this for myself and each kid. Now I just laugh all the way to the bank.

Jimbo
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#4
(04-23-2014, 06:52 PM)rnsmth Wrote: Significantly Apple announced the intention to increase the dividend each year going forward.

THIS! I already expected this but it was VERY nice hearing it from AAPL.

I think the smaller div increase was due to their cash being overseas and them mostly using the US cash(and debt) to fund the dividend.

I'll take an 8% increase all day long.
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#5
(04-24-2014, 10:00 AM)fiveoh Wrote:
(04-23-2014, 06:52 PM)rnsmth Wrote: Significantly Apple announced the intention to increase the dividend each year going forward.

THIS! I already expected this but it was VERY nice hearing it from AAPL.

I think the smaller div increase was due to their cash being overseas and them mostly using the US cash(and debt) to fund the dividend.

I'll take an 8% increase all day long.

The divvy increase is being funded entirely with the reduction in share count. In other words, the absolute dollar amount paid out in dividends next year will be about the same as it was last year.
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#6
I figured the split was so that they could get onto the Dow eventually.
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