Apple, Inc. Dividend Policy
I previously wrote an article on why some companies like Apple Computer Inc do not pay their shareholders Cash Dividends anymore. Apple did used to pay dividends to the owners of its stock but it discontinued that policy. Since, Apple is a fast growing company and the industry it competes in requires constant innovation and rolling out of new products. Apple Iphone for example, if Apple started paying its shareholders dividends there would be a lot less money to research and develop new products which in turn would harm the company's future prospects. Apple can use that dividend money rather to invest in new products which in turn (hopefully) become a success like Ipod and raise Apple stocks to new heights which would in turn help you as investors.
The last time Apple paid dividends was in month December of 1995. Apple has been paying dividends to its shareholders every quarter after 7 years it became a public company. Apple began paying dividends from June 15th of 1987 to its last dividend in 1995. Some investors usually like dividends because they would use to those dividends to buy more stock instead of cashing it out. For those investors, Apple dividend policy is surely a bad news; Dividend Reinvestment Plan (DRP) is also not available to investors, when dividends are not paid out. Dividend Reinvestment Plan helps shareholders to convert their dividend earnings into stocks. There are numerous advantages of DRP, as there are fees attached to buying stock through the program, and shareholders also get stocks at significant discounts.
Cash Dividends Apple Inc paid ranged from $0.06 to $0.12.
June 15 - August 14 1987 - $0.06 Dividends per share was paid.
December 15 1987 - September 1988 - $0.08 dividends per share was paid.
$.10 in last of 1988 and first 3 quarters of 1999.
$0.11 DPS was paid in last quarter 1989 and first 3 quarters of 1990.
$0.12 DPS was in last quarter of 1990 to December of 1995.
Apple paid dividends to it shareholders in the month of March, June, September, and December.
I have also written an article on general information about Apple Inc.
You can also read Apple Financial Analysis that has been written on our site.
Detailed Apple Stock Performance written on February 1
Apple - Devil's Advocate talks about monopolistic tendencies of Apple Computer Inc
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