Apple's shareholders will now get an annual dividend of $12.20 per share, making Apple one of the highest dividend-paying companies. With about 940 million shares outstanding, Apple will return $11.5 billion to shareholders over 12 months, an amount that exceeds the market value of 200 other corporations in the S&P 500.
Sentiment: Strong Buy
And the stock price will go down how much? $50 per share. Thats like losing $30,000 and making $12,000. No thanks! I am staying out until aapl launches a new technology and I see huge sales happening. Then I will consider it. Will be months/years!
Sentiment: Strong Sell
Bad move, you can easily put the same 1000 shares of Apple into a BDC today whose share price may swing in a 3 dollar range on a regular basis, yet generates $4000 in monthly dividends payed, assuming a $400/share in Apple. that are steadily increasing month after month and get $48,000 per year in dividends today, plus have relative safety in dividends But under your approach, you are happy to surrender up to $36,000 per year in dividends with risky capital preservation. Exactly what coolaid have you been drinking? I recently moved $100K into 3 BDCs and was making $1800 each month in dividends. If I had had $400,000, $400/share x 1000, in those same BDCs, do the math, those dividend would have been $7200 per month, or $86,400 per year. Under your approach, you would be happy to give up $74,200 per year in dividends, and have extremely high risk in preserving any capital consistency. One other thing, as of right now, Apple has lost about $305 from its high, so that $305 * 1000, why you have also given up the opportunity to be an additional $305,000 to work on monthly dividend generation. Good luck to you on your vast dividend and yield generation experience and expertise, sounds like betwee he $12,200 per year in dividend, your social security, and if you get a pension, you might be okay when you retire.
Note that you can make an additional $5k - $6k per MONTH writing covered calls to people gambling that the stock will soar back to $700. Most likely, it will still be $400 a year from now ...
Yes $12,200 less of course 28% taxes = $12,200-$3,400= $8,800.............Don't forget the $50 drop in stock price which leaves $8,800-$50,000= ($41,200).....But that loss is a good thing cuz you can right it off your new higher tax rate for next year!!!
Wonder if Apple has that 145 Billion tied up in Gold and Aussie currencies and that is why they need to borrow against it to pay for the dividend??? And they will bring it back only when they can offset losses.
Wouldn't bother me, but even me (an Apple product user- 4 iphones, IMac and Ipod), i have seen nothing but problems with the software as of late. Also, seems like app folks have made their money and don't care about quality updates. Maybe I am wrong and just my personal experience, what do you think?
Anybody take a close look at the balance sheet? how much apple earn on investments of the 145 Billion?
Wonder if ATT or Verizon are going to change phone upgrade terms to save some bucks when its time to pinch pennies? Wonder if it will push phone upgrades to the right on the schedule and delay upgrades? Bet they require iphone 5 users to go full two years this time around.......... thoughts??