Apple Announces a 10.5% Dividend Raise

Apple Technology

On May 2nd, according to Apple’s second quarter results, “The Board has approved a 10.5% increase to the Company’s quarterly dividend, and has declared a dividend of $0.63 per share of the Company’s common stock, payable on May 18, 2017 to shareholders of record as of the close of business on May 15, 2017.” (

At the same time, they increased their share repurchase authorization to $210 billion from last year’s $175 billion, as they expand their capital return program to $300 billion.

Since they started the capital program in mid 2012, Apple has spent $151 billion in share repurchases, propping up their earnings per share. I’m a big fan of how much capital Apple returns to their shareholders in share buybacks and dividend increases.

Dividend Income increased 0.20%

Considering the Dividend Beginner portfolio contains 23 shares of Apple Inc., my annual income from AAPL has increased by $5.52 USD, from $52.44 USD to $57.96 USD. My 12-month forward dividend income has increased from $2,825.02 to $2,830.53, an increase of 0.20%. My income from AAPL accounts for 2.05% of my annual dividend income.

While a $5.52 increase in annual dividend income seems quite low, think about how it would require an investment of $324.71, at a yield of 1.7% (AAPL’s dividend yield on the day of the raise) to generate $5.52 in dividend income. That’s the equivalent of getting twenty nine hours of your life back, at Quebec’s minimum wage of $11.25.

Note: I use a 1:1 ratio when calculating dividend income for $CAD and $USD since it would be too complicated to constantly account for currency difference and it’s constantly changing. The portfolio only generates $120 USD annually with all other income being $CAD.

Before Net Increase After
Annual Dividend Income $2,825.02 $5.52 $2,830.53
Monthly Dividend Income $235.42 $0.46
Percentage Increase 0.20%

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