Apple to pay dividend this week: 100 shares
On Thursday, Apple investors will receive their quarterly dividend. This yields it, and that is the size of the room for further increases.
Apple is once again paying dividends to its shareholders this week. Investors who held their shares on time will receive the new quarterly payment on Thursday.
Anyone who owns 100 Apple shares will receive approximately €23.40 before tax. The payment follows shortly after strong quarterly figures. Yet investors are not fully convinced. In particular, the outlook for the coming months raises doubts.
Apple will pay a dividend of $0.27 per share on August 13. Anyone who owned 100 Apple shares before the ex-dividend date of August 10 will receive $27. At the current exchange rate, that's about 23.40 euros before taxes.
On an annual basis, with a constant dividend, this amounts to 108 dollars, converted to about 93.50 euros. That's not a huge source of income. The expected dividend yield is only about 0.34 percent.
Apple does have a lot of room to further increase the benefit. The company is expected to pay only 11.3 percent of its profits as dividends. As a result, the vast majority remains available for investments and the purchase of treasury shares.
In addition, Apple has been increasing its annual dividend for fifteen years in a row. Thanks to the strong cash flows and the low benefit ratio, there seems to be enough room to continue this series for the time being.
The dividend payment follows shortly after Apple's strong quarterly figures. In the fiscal third quarter, revenue increased by sixteen percent to a record $109.4 billion. Earnings per share even rose by 29 percent to 2.02 dollars.
The strong demand for the iPhone 17, Mac computers and Apple's services in particular drove growth. Nevertheless, the record figures were not enough to make investors enthusiastic. The share fell after publication.
The concerns are mainly in the coming months. Apple expects sales growth of nine to eleven percent in the September quarter, which was a bit disappointing. At the same time, the company warns of shortages of advanced chips. As a result, Apple may struggle to produce enough iPhones, Macs, and iPads to meet demand.
Profitability may also be under pressure. Adverse currency movements can depress growth by about 2.5 percentage points, while more expensive memory chips increase costs. Apple expects a gross margin of 47 to 48 percent for the current quarter.
Investors will soon have to deal with another important change. John Ternus, who has been responsible for Apple's hardware activities for many years, will take over the position of CEO from Tim Cook on 1 September.
Cook remains closely involved with the company and becomes Executive Chairman. The change of management is presented as a continuation of the current strategy and not as a major change of course.