Apple Inc. (NASDAQ:AAPL) Shareholders Set to Receive $0.27 Quarterly Dividend

Key Points

• Apple declared a quarterly dividend of $0.27 per share, payable November 16 to shareholders of record on November 12. The dividend implies an annualized payout of $1.08 and a 0.3% yield.
• Apple’s latest quarterly results exceeded expectations, with EPS of $2.10 versus the $1.99 consensus and revenue of $114.48 billion, up 11.7% year over year.
• The dividend appears well covered, with a current payout ratio of 13.8% and an expected future payout ratio of 11.3%; institutional investors own 67.73% of the company.

Apple Inc. (NASDAQ:AAPL - Get Free Report) announced a quarterly dividend on Monday, November 2nd. Shareholders of record on Thursday, November 12th will be given a dividend of $0.27 per share by the iPhone maker on Monday, November 16th. This represents a $1.08 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Thursday, November 12th.

Apple has a dividend payout ratio of 13.8% meaning its dividend is sufficiently covered by earnings. Research analysts expect Apple to earn $9.57 per share next year, which means the company should continue to be able to cover its $1.08 annual dividend with an expected future payout ratio of 11.3%.

Apple Price Performance

Shares of NASDAQ:AAPL opened at $338.32 on Tuesday. Apple has a 1-year low of $243.42 and a 1-year high of $351.73. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.00 and a quick ratio of 0.93. The business has a fifty day moving average price of $333.62 and a 200-day moving average price of $296.77. The company has a market capitalization of $4.94 trillion, a PE ratio of 38.80, a PEG ratio of 2.72 and a beta of 1.07.

Apple (NASDAQ:AAPL - Get Free Report) last posted its quarterly earnings results on Monday, November 2nd. The iPhone maker reported $2.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.99 by $0.11. Apple had a return on equity of 135.46% and a net margin of 27.62%. The firm had revenue of $114.48 billion during the quarter, compared to analyst estimates of $113.40 billion. During the same quarter in the previous year, the firm earned $1.85 EPS. Apple's quarterly revenue was up 11.7% compared to the same quarter last year. As a group, equities analysts expect that Apple will post 8.75 EPS for the current fiscal year.

Insider Activity

In other news, SVP Jennifer Newstead sold 2,399 shares of the stock in a transaction that occurred on Tuesday, October 27th. The shares were sold at an average price of $343.36, for a total value of $823,720.64. Following the transaction, the senior vice president owned 32,396 shares in the company, valued at $11,123,490.56. This represents a 6.89% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO John Ternus sold 25,412 shares of the firm's stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $332.94, for a total transaction of $8,460,671.28. Following the completion of the transaction, the chief executive officer directly owned 59,567 shares in the company, valued at approximately $19,832,236.98. The trade was a 29.90% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 289,252 shares of company stock worth $96,301,063. Company insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Avenir Tech Ltd purchased a new position in Apple during the second quarter valued at approximately $29,000. Ironwood Wealth Management Inc. purchased a new stake in Apple during the third quarter worth $34,000. Longfellow Investment Management Co. LLC purchased a new stake in Apple during the second quarter worth $30,000. ABS Investment Management LLC bought a new stake in Apple during the 2nd quarter valued at $376,168,000. Finally, Bamco Inc. NY bought a new stake in Apple during the 2nd quarter valued at $118,000. Hedge funds and other institutional investors own 67.73% of the company's stock.

Apple Company Profile

Apple Inc designs, develops and sells consumer electronics, software and digital services. Its best-known products include the iPhone smartphone, Mac personal computers, iPad tablets, Apple Watch, AirPods and other accessories. The company also develops operating systems and applications that support its hardware ecosystem.

Apple's services business includes the App Store, Apple Music, Apple TV, Apple Arcade, iCloud, Apple Pay and other subscription, payment and digital-content offerings.

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