Apple Just Paid Investors: Here's How Much They Received

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Apple Inc. (NASDAQ: AAPL) is rewarding its shareholders once again with another quarterly dividend of $0.25, payable on Thursday, Nov. 14. The declaration came with just-reported earnings that were impacted by a one-time EU tax payment. Furthermore, the rollout of Apple Intelligence is incomplete, and iPhone sales in China were disappointing. Guidance was cautious, but the dividend payment underscores the management’s commitment to delivering consistent value to investors.

Why Investors Like Dividends

Investors favor dividend stocks for two main reasons. The first is that they offer enticing total return potential. Total return is a comprehensive measure of investment performance that includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. It is one of the most effective ways to boost the prospects of overall investing success.

Dividend stocks can also provide investors with a steady, reliable stream of passive income. Passive income is money that is earned with little to no ongoing effort, usually from assets that generate cash flow. This income can come from a variety of sources, including stock dividends. Generating passive income is a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Its Dividend History

Apple has paid a quarterly dividend since late 2013, and the current yield is 0.4%. Since late 2020, when the dividend was $0.205 per share, the payout has increased every year. Between 2014 and 2020, the company also hiked the dividend yearly, with the payout growing from $0.47 to $0.82. Note that the payout was $0.10 a share back in 1988.

Note that the share price has grown by around 1,020% since 2013 as well, offering investors plenty of growth along with income.

Apple, the Company

Its headquarters are in Cupertino, California, which is in Silicon Valley. The company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The stock went public in December of 1980. Apple is similar to or competes with the likes of Samsung, Dell Technologies Inc. (NYSE: DELL), HP Inc. (NYSE: HPQ), International Business Machines Corp. (NYSE: IBM), and Microsoft Corp. (NASDAQ: MSFT).

Like many other tech companies, Apple has been investing heavily in artificial intelligence, including for advancements in Siri and image processing. The company launched the iPhone 16 in September, and more recently an updated iOS with AI features. Other recent product releases include new Apple Watches, iPads, and its Vision Pro mixed reality headset.

Apple, the Stock

The share price has grown almost 239% in the past five years, handily outperforming the Nasdaq. Year to date, the stock is up about 17%, while the Nasdaq is around 28% higher. Shares hit an all-time high of $237.49 last month. The current mean price target is nearly 10% higher than the current share price, but that could change with further post-earnings target changes by analysts. Needham and Rosenblatt both have reiterated Buy ratings. The consensus recommendation is to buy shares, with 11 analysts having Strong Buy ratings.

The stock remains popular with hedge funds. Institutional investors hold about 69% of the shares. Berkshire Hathaway, Blackrock, State Street, and Vanguard have notable stakes. About 141 million shares, or almost 1% of the float, are held short. Note that some officers parted with shares in early October, including CEO Tim Cook’s sale of more than $50 million worth.

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