Apple likely to raise dividend payouts annually for the foreseeable future
Apple has a quarterly dividend of $0.25 per share, which was increased from $0.24 per share earlier this year. This year, Apple has already paid investors $0.74 per share, and based on its history, is likely to pay another $0.25 per share before the end of the year, bringing the total dividend for 2024 to $0.99. Apple has a track record of consistently paying and increasing its dividend for 13 consecutive years.
Collin Brantmeyer for The Motley Fool:
According to recent research by Hartford Funds, anytime a company grew or initiated a dividend, its stock had higher returns and less volatility compared to non-dividend-paying stocks since 1973.
Hartford Funds also highlights that a key metric for a dividend-paying stock is its payout ratio, or the percentage of a company’s profits paid out as dividends. The research suggests that it is essential for a company to keep its payout ratio below 75%; otherwise, management may need to cut its dividend if its earnings slide. With a payout ratio of only 14.9%, Apple’s management should be able to maintain and raise it annually for the foreseeable future.
MacDailyNews Take: Apple shareholders have decades of dividend raises ahead.
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