Is an Apple, Inc. Dividend Hike Around the Corner?

As the largest publicly traded company in the world, Apple (NASDAQ: AAPL  ) attracts its fair share of attention from the investment community.

And as such, divining what Apple may or may not do in any given quarter can take on an almost sporting-like quality in the run-up to its earnings report on April 23. Expect plenty of chatter about what it has in store for its investors to only increase in the weeks ahead.

However, in my mind, there's one aspect of Apple's coming earnings report that seems highly likely, and that's the fact that Apple's due for a dividend hike when it reports.

The case for an Apple dividend increase
The base case for exactly why Apple will likely raise its dividend starts with the fact that it will have maintained the same $3.05 payout for three consecutive quarters, which is the number of quarters that passed before Apple raised its payout last year. As we all know, Apple's not exactly short for cash, either. 

However, just how much Apple will raise its dividend is another matter of grand uncertainty. However, in the video below, tech and telecom analyst Andrew Tonner breaks down this storyline and suggests a few different routes Apple could choose if, or when, it increases its dividend later this month.

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Read/Post Comments (7) | Recommend This Article (6)

Comments from our Foolish Readers

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  • Report this Comment On April 15, 2014, at 11:27 AM, zwcked00 wrote:

    Feb 6, 2014 3.05 Dividend

    Nov 6, 2013 3.05 Dividend

    Aug 8, 2013 3.05 Dividend

    May 9, 2013 3.05 Dividend

    That makes 4 consecutive Quarters - not 3

    And if they don't change anything - it will be 5 Quarters - very disappointing if we don't get a dividend bump!

  • Report this Comment On April 15, 2014, at 11:37 AM, dbtuner wrote:

    Apple has paid $3.05/qtr for 4 quarters in a row, not 3

  • Report this Comment On April 15, 2014, at 12:18 PM, RussellL wrote:

    Even with an increase in dividends and stock buyback, it won't help AAPL.

  • Report this Comment On April 15, 2014, at 12:41 PM, Foolonthepill wrote:

    Apple appears to be relegated to increasing its dividend and buying back shares as means to placate shareholders after having given up the fight for tech supremacy vs. Google and Samsung. I look forward to buying some shares when it gets back to sub $450, which should be during the conference call as the former tech leader's in-over-his-head automaton defends his inaction and subsequent fall from shareholder grace. At least half of the current Samsung S users would have an Apple iPhone if the company, under Cook's asleep-at-the-wheel leadership, had a 5" iPhone in the market when former AAPL loyalists first started clamoring for one. 2014 will be another year of making excuses for the former king-of-the-world brand. In fact, AAPL is one Jeff Gundlach downgrade away from revisiting a $400 stock price.

  • Report this Comment On April 15, 2014, at 12:50 PM, Mathman6577 wrote:

    Apple probably needs a new product to move the needle. It looks like it will be iWatch and not iTV.

  • Report this Comment On April 15, 2014, at 12:53 PM, Mathman6577 wrote:

    @Foolonthepill: I don't think Google and Samsung have taken the tech leadership away from Apple:

    1. Google's failed foray into harware (operating loss and sale of Motorola, product issues at Nest, stagnating sales of Nexus line).

    2. Samsung is losing money on electronics.

    3. Record number of iPhones and iPad's shipped.

  • Report this Comment On April 15, 2014, at 12:54 PM, LouieL0uie wrote:

    Since Motley Fool has a philosophy of buying and holding good stocks for the long term, I don't see how is this sort of speculative commentary is helpful. Tonner says we should be on the lookout for Apple to raise the dividend and he proposes a scenario in which the increase is 32%. Okay, fair enough, but what are we supposed to do with this information?

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