Long Term Dividend Growth

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    Posted: 19 March 2012 06:54 PM #61

    Horace compares todays dividend & share buyback announcement with apples growing cash pile…

    http://www.asymco.com/2012/03/19/apples-dividend-and-share-re-purchase-plan-the-impact-on-cash-growth/

    The dividend announcement will do nothing to satisfy those that want apple to disperse its massive cash horde, which will still continue to grow by massive amounts each quarter.

    If you thought the whinging was bad at its current $100 billion level, just wait until next year when it reaches $200 billion.

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    Posted: 19 March 2012 06:55 PM #62

    Burgess, aren’t you missing something?

    I’ll dispense with any suspense:  http://macdailynews.com/2012/03/19/disappointed-by-apples-yield-think-different/

    Think Future Apple Dividend Upside?.

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    Posted: 19 March 2012 06:57 PM #63

    Mav - 19 March 2012 09:55 PM

    Burgess, aren’t you missing something?

    I’ll dispense with any suspense:  http://macdailynews.com/2012/03/19/disappointed-by-apples-yield-think-different/

    5 hours sleep?

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    Posted: 19 March 2012 07:05 PM #64

    Mav - 19 March 2012 09:55 PM

    Burgess, aren’t you missing something?

    I’ll dispense with any suspense:  http://macdailynews.com/2012/03/19/disappointed-by-apples-yield-think-different/

    Think Future Apple Dividend Upside?.

    Thanks for the link - I certainly hope the following is true in Apples case:

    “A study of other dividend-paying technology titans will confirm an identical pattern, where they start off with a low payout ratio and continue to raise it in excess of earnings growth in the ensuing years.?

    I guess my gripe is with the dividend ratio to earnings - its less than 20% of projected FY2012 earnings. With a safe war chest of a hundred billion, I dont understand why they can’t payout closer to 75%or more of current earnings.

    Any loss in repatriation taxes would more than be made up for by the massive share price appreciation that would follow from a annual dividend rate in the $30 - $40 range per share.

    In managements defense I guess they are not looking at this from a shareholders persepctive.

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    Posted: 19 March 2012 07:16 PM #65

    So with AAPL giving out $2.65/qr starting in the summer, I’ve been thinking about taking part in a DRIP (dividend reinvestment plan), so instead of getting paid cash, I get paid my dividend in shares.

    Question:

    Assume I have 100 shares of AAPL.  At $2.65/qr, I would get $265 in dividends each quarter.  But that’s not enough to get even one share of AAPL.  So for those of us concentrating on options and don’t have a whole lot of common shares, is there any benefit in taking part in DRIP?  Can the dividends from TWO quarters be combined in a DRIP so I get shares every OTHER quarter as dividends?

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    Posted: 19 March 2012 08:17 PM #66

    moltenfire - 19 March 2012 10:16 PM

    So with AAPL giving out $2.65/qr starting in the summer, I’ve been thinking about taking part in a DRIP (dividend reinvestment plan), so instead of getting paid cash, I get paid my dividend in shares.

    Question:

    Assume I have 100 shares of AAPL.  At $2.65/qr, I would get $265 in dividends each quarter.  But that’s not enough to get even one share of AAPL.  So for those of us concentrating on options and don’t have a whole lot of common shares, is there any benefit in taking part in DRIP?  Can the dividends from TWO quarters be combined in a DRIP so I get shares every OTHER quarter as dividends?

    Dividend reinvestment plans typically issue fractional shares.

    While Apple will be declaring dividends, have not heard if they will have a reinvestment plan.

         
  • Posted: 19 March 2012 11:43 PM #67

    Today’s announcement was a punch in the kidneys to Apple’s competitors. Despite overwhelming pressure from WS, the company has preserved its war chest—as Horace noted, this tiny dividend will hardly slow the advance of APPL’s cash growth. Along with the share repurchase plan, it can easily be financed by future earnings.

    Google, et al, now know (if they didn’t realize it before) that Apple will not be distracted from its goals of industry domination. The only question: which industry(ies) will Apple disrupt next?

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  • Posted: 19 March 2012 11:48 PM #68

    APPL does not presently offer a DRIP,program, but that could change, seeing as untill now, it hadn’t offered a Div. since the mid 90s.

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    Posted: 20 March 2012 01:10 AM #69

    rale - 20 March 2012 02:48 AM

    APPL does not presently offer a DRIP,program, but that could change, seeing as untill now, it hadn’t offered a Div. since the mid 90s.

    Just trying to think ahead, of course.  I didn’t know DRIPs can offer fractional shares.

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    Posted: 20 March 2012 02:27 AM #70

    GM is expecting a 20% increase in dividend next year.  He tends to be conservative ( ie he predicted 1 million iPads).

    Today’s announcement is right up there with OS X, iPod, iPhone, and iPad when they were first introduced.  Look 10 years into the future and look at the impact those products had on Apple.

    This dividend is the beginning of amazing returns for those who buy their first share today and keep adding for the next 10 years.

    I see our small $10 a year dividend double in 4 years, and the stock appreciate much faster as a result.

    It’s like buying oil stock in the late 1800’s or railroad stock in the mid 1800’s.

         
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    Posted: 20 March 2012 02:30 AM #71

    omacvi - 20 March 2012 05:27 AM

    GM is expecting a 20% increase in dividend next year.  He tends to be conservative ( ie he predicted 1 million iPads).

    Today’s announcement is right up there with OS X, iPod, iPhone, and iPad when they were first introduced.  Look 10 years into the future and look at the impact those products had on Apple.

    This dividend is the beginning of amazing returns for those who buy their first share today and keep adding for the next 10 years.

    I see our small $10 a year dividend double in 4 years, and the stock appreciate much faster as a result.

    It’s like buying oil stock in the late 1800’s or railroad stock in the mid 1800’s.

    A 20% increase in dividend next year will not even keep pace with apples earnings growth, So i would have to disagree with GM on that point.

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    Posted: 20 March 2012 04:52 AM #72

    I am someone who thinks that having 100 billion dollars to do whatever the f… Apple wants to do is a tremendous strategic asset. The suppliers know that they will get paid immediately in cash, the competitors are frustrated and afraid of what Apple might do with it, and investors feel more secure about the stock price.

    I think that the announced dividend is just fine. I would definitely not touch any cash that would need to get repatriated. And if the cash balance increases to 200 billion then they can still increase the dividend and reward longtime shareholders who will have a better yield than new investors. The value funds will probably think similarly and load up as many shares as possible in the next few months.

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    Posted: 20 March 2012 02:03 PM #73

    Here is apple answer

    Michel,

    Thank you for your inquiry. ?We don’t have plans to institute a dividend reinvestment plan.

    Regards,

    Apple Investor Relations
    T 408 974-3123

         
  • Posted: 20 March 2012 02:35 PM #74

    The dividend is a little less than I was expecting. I was hoping for 2-2.5 percent. At any rate I’m very happy they’ve declared a recurring dividend which will more than likely be increased over time.

    The reason I’m so happy about the dividend (and I may be one of many in this situation) is I’m planning on retiring at the end of 2012. Before the dividend rumors started, I was planning on having to sell part of my aapl shares to retire. I didn’t want to have to do that. I wanted to keep all my shares which are worth into seven figures so they can continue to grow. Now between the aapl dividend which is all in a IRA and interest income from my 401K and social security I don’t have to sell any aapl.

    I feel like it’s a win-win. I keep my aapl and retire anyway. If many others fall into this category I would think it’ll have a positive effect on the strength of the stock.

    By the way, pre dividend rumors I set a price of $550 I was going to sell shares at for retirement. So glad I didn’t!

         
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    Posted: 20 March 2012 02:57 PM #75

    Not that we provide advice ‘round here but…

    Do you require investment proceeds for retirement?  Or did you just think AAPL was getting too high?  Or something else?

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