5 ms·
Isn't a $0.22 dividend per common share quite low?
by sgt 5y ago
Isn't a $0.22 dividend per common share quite low?
- r0fl 5y agoSame as before. I’m surprised they didn’t increase it.
- abhv 5y agoDividends are not an efficient mechanism to return cash to investors. The recipient is forcefully taxed. Share buybacks technically accomplish the same; the proportional increase in shareholder value should be the same. However, investors who do not want to recognize income that year do not have to; whereas investors who need the dividend income can sell a small number of appreciated shares.
- rileymat2 5y agoI need to look at this more, but don’t dividends mostly return real current earnings where share buybacks are moving your return to future earnings which may never exist? Also, many people are harmed by this tax treatment because a couple making 80k a year pay no tax on the dividend capital gains? I am just saying dividends v share buybacks are not the same and have other effects.
- ghaff 5y agoYeah. They're different. Dividends give you cash on the barrel each quarter that is very sticky about heading in a downward direction--but tax treatment is pretty much like ordinary income in most cases. Stock buybacks may drive stock prices upwards in an unpredictable way that may lead to being able to sell appreciated stock in a tax-advantaged way a couple years out. Theoretically, it's all the same after tax effects but we don't live in that theoretical world.
- deleted 5y ago[deleted]
- colinmhayes 5y agoDividend tax rate is the same as capital gains rate which is what you pay when you sell your stock if you've held it for a year.
- bananabreakfast 5y agoThat's not true at all. Dividends are taxed as regular income, unless they're qualified dividends then they have their own rate.
- rileymat2 5y agoIf you hold the stock for more than a year it is part of the qualification, and with some exceptions most will be.
- hnfong 5y agoAFAIK, the situation is totally different for non-US tax residents (for those without a tax treaty with US anyway). Dividends are taxed at a flat 30% rate. Capital gains are not taxed by the US. At least that's my situation. Companies that pay heavy dividends are a substantially less attractive buy in my case.
- lotsofpulp 5y ago> Also, many people are harmed by this tax treatment because a couple making 80k a year pay no tax on the dividend capital gains? Really? I am only aware that at least long term capital gains tax applies to everyone for qualified dividends.
- rileymat2 5y agohttps://www.investopedia.com/ask/answers/12/how-are-capital-gains-dividends-taxed-differently.asp https://www.investopedia.com/ask/answers/12/how-are-capital-... For the 2020 tax year, you pay 0% on long-term capital gains if you have total income of $40,000 or less; 15% if you have income of $441,450 or less; and 20% if your income is greater than $441,450.
- lotsofpulp 5y agoInteresting, I never paid attention to that. I would guess the number of singles/couples earning $40k/$80k total per year or less and own enough stock to get material dividend income must be miniscule.
- statguy 5y agoLots of retired affluent people fall into that category. A $4M portfolio would throw off $80K in annual dividends assuming an average 2% dividend rate.
- lotsofpulp 5y agoA retired couple with $4M net worth excluding home value is 97th percentile. $1M is 90th percentile. And they surely would have a significant proportion of assets in bonds yielding a couple percent rather than stocks, so earning tens of thousands in only dividend income is probably super rare. https://dqydj.com/net-worth-percentile-calculator-united-states/ https://dqydj.com/net-worth-percentile-calculator-united-sta...
- deleted 5y ago[deleted]
- dkonofalski 5y agoI think, historically, Apple's dividends have been pretty low in general. Most of my dividends from other stocks are much higher.
- sz4kerto 5y agoGiven that tech companies don't tend to pay any dividends, it's good.
- syspec 5y agoYou have to take the recent split into account.
- oh_sigh 5y agoNo, since there was a 4:1 split last August. $0.22/share is historically high: https://investor.apple.com/dividend-history/default.aspx https://investor.apple.com/dividend-history/default.aspx
- jbverschoor 5y agoI don’t think it is. The dividend yield was in the 1.5-2% range about 10 years ago iirc.
- zsmi 5y agoThere was a 4:1 split in July, 2020 so it's comparable to the $0.82 dividend Apple was issuing earlier in 2020. https://investor.apple.com/dividend-history/default.aspx https://investor.apple.com/dividend-history/default.aspx
- deleted 5y ago[deleted]
- short12 5y agoWhy does apple use aspx? Not only is that strange but does anyone really use that anymore?
- marcellus23 5y agoApple uses Webex for meetings instead of some homegrown FaceTime, for the same reason — somebody else already built something that works.
- ericd 5y agoPerhaps they don't make their investor relations pages themselves? Not exactly core to their business.
- chrisseaton 5y agoIt's an off-the-shelf product. https://www.q4inc.com/products/investor-relations-websites/default.aspx https://www.q4inc.com/products/investor-relations-websites/d... Why do you think they should they make it themselves?
- Redoubts 5y agoWell, 1) That would be very on brand for Apple 2) They're already in the business of making complex web pages, and this is the only subdomain branded with this tech, so why special case it?
- chrisseaton 5y ago
- nabla9 5y agoThey use mostly share buybacks to return money to investors.