If you’re considering investing in Apple, you’ll want to know all you can about the Apple dividend date so you can make an informed decision. Apple dividends can substantially boost this powerful company’s shares, so your investment can pay off handsomely.
The Apple dividend date is the scheduled payout of funds to the company’s shareholders. While some companies pay annual or monthly dividends, most companies in the United States pay quarterly dividends. Shareholders receive dividends depending on the amount of stock they hold. For example, if you hold 100 shares of stock in a company and the dividend rate is 0.35 cents, you will receive a cash payment of $35. Stockholders can attend the company’s annual shareholder meeting, held in February or March, but advance registration is required.
Apple CEO Steve Jobs was famously against shareholder dividends. In fact, the company paid no dividends when Jobs led the company from 1997 to 2012. Jobs cited the flexibility and security of having more than $100 billion in cash holdings.
In 2012, Apple announced that it would pay shareholder dividends for the first time since 1995, in response to the dramatic success of its iPhone, iPad and iPod products. Then-CEO Tim Cook reported at the time that the company had strategically invested funds in research, development, and innovation, freeing profits with which to reward loyal shareholders. The Cult of Mac blog calculated that an investor would have to have about a million shares of Apple stock to earn the 2012 minimum wage in dividends.
Another factor contributing to the success of the Apple dividend program has been the company’s introduction of stock buybacks. Since September 2013, Apple has reduced the supply of its stock on the market by 5.4%. This increases the price of the stock by limiting supply in response to investor demand. It also enables the company to boost the size of its dividend payments each year. At $2.5 billion per quarter, the Apple dividend program is one of the largest among U.S. companies. Since the debut of the buyback program, dividend payments per share have increased by 84%.
The most recent Apple dividend was announced on Jan. 28, 2020, recorded on Feb. 10, 2020, and payable to shareholders on Feb. 13, 2020, at a rate of 0.77 cents per share.
The recent history of the Apple dividend rate per share is as follows:
In the second quarter of 2014, Apple offered a seven-for-one stock split in addition to the dividend payment. A two-for-one stock split in lieu of dividends was paid in April 1987, April 2000, and February 2005.
Most companies that offer dividends pay quarterly, but others offer annual or even monthly dividends to their shareholders. Master-limited partnership and real estate investment trusts often pay dividends every 30 days. When a publicly traded company is in its growth phase, it must reinvest a significant portion of earnings to eventually reach large market cap status.
When this occurs, annual growth of up to 40% is no longer possible, so issuing dividends enables these companies to retain loyal shareholders. As of early 2018, Apple’s market cap of nearly $1 trillion made it the first company in history to reach these heights, with runner-up Coca-Cola coming in at more than 33% less.
Other companies provide a special one-time dividend payment in lieu of or in addition to regular dividends. Businesses in the United States are free to make their own determinations about how, when, and whether to pay shareholder dividends. However, global firms usually pay out dividends either once or twice a year.
If you invest in a company that pays dividends, you’ll need to know:
When you’re searching for a stock to buy in hopes of receiving a dividend, narrow down your options by searching for an ex-dividend date that falls after the time period in which you plan to invest.
Apple’s stock price was $22 per share when the company issued its initial public offering on December 12, 1980. When Apple announced its new dividend program in 2012, the company’s stock price was at an all-time high of $601.50 per share. This resulted in a share yield of 1.8%, which is the percentage of the company’s stock price paid in dividends. At the time, this was more than twice the average share yield for tech companies traded on the S&P 500, but less than the average share yield of 2.1% for all S&P 500 firms. By 2016, the company’s dividend yield reached 2.1%.
Many experts consider Apple a strong buy based on its yield, dividend growth, and buyback program. With a net value of $345.54 per share, we estimate that the dividends boost Apple shares in value by 15% over the actual stock price. What’s more, this value is projected to rise over $400 per share by 2023.
Although dividends were less popular in the 1990s days of double-digit stock returns, today’s savvy investors know that buying shares in companies that pay dividends can result in significant profits. Few firms stop issuing dividends to shareholders once they begin doing so, so devoting some of your portfolio to dividends adds stability to balance your higher-risk, higher-return investments. A few companies, including Johnson & Johnson and Dover Corp., have been issuing shareholder dividends on a regular basis for more than five decades.
While Apple hasn’t reached that level of longevity yet, the ability to pay dividends strongly indicates the likelihood of a company’s continued success. Reinvesting dividends into more stock shares enables you to take advantage of compound interest.
Similar to a bond, a dividend stock offers the promise of regular income while also offering increased profits as the company continues to grow. However, keep in mind that dividends are not completely free of risk. For example, Wells Fargo decreased its dividend payments from 38 cents in 2008 to 5 cents in 2009 due to the banking financial crisis and bailouts.
Shareholders can access customer service through Computershare Investor Services, which is Apple’s transfer agent. You can request an account statement, report a change in your mailing address, request a missing or lost stock certificate, or transfer ownership of your shares. The company will also issue the tax forms associated with your Apple stocks. Investors in Apple can call Computershare toll-free at 877-360-5390 or visit the Computershare website. Assistance is also available from Apple’s investor relations department at 408-974-3123.
To learn more about buying and selling dividend stocks such as Apple, sign up at Raging Bull today. Our team of experts offers free webinars, e-books, and tons of other great resources you can use to step up your investing game.
Yesterday’s market action was severe. We hadn’t seen a sell-off of that magnitude in over two years. In fact, the last time we saw a 1,000 point down move in the Dow was back in February of 2018.
And believe me, that wasn’t fun for a lot of traders!
What I find interesting is how pundits compared the start of this year to 2018. And in case you forgot…that was the last election cycle in the U.S.
So does that mean it’s all up and up from here on out?
But whether you’re looking to buy the dip or sell the rip… you need to know your levels.
Today I’m going to breakdown the VIX, VVIX, and SPY charts. And share with you my insights on where I think this market goes next.
No other indicator works better at picking up market turnarounds than the VIX and VVIX. As a quick refresher, the VIX tells you trader expectations for volatility in the S&P 500. The VVIX tells you the market’s demand on the VIX.
Let’s break this down further. The VIX generally moves in the opposite direction of the market. That’s why you see the VIX spike when the market drops. Traders will buy call options on the VIX to protect themselves against market declines.
Now here’s the key – the VVIX tells you demand for VIX options. So, if the VVIX isn’t making new highs, but the market is making new lows, that means traders aren’t buying call options on the VIX with the same conviction. This can mean that the market is getting close to a bottom.
There’s one other piece of information you need to make this all work. Both the VVIX and the VIX are mean-reverting. That means they like to snap back to the average from their extremes. For the VIX that’s around $15-$18 and the VVIX it’s $90-$100.
I look for the VVIX over $115 and the VIX over $25 as an indication the market is nearing a low. Does this always work? No. But, it works quite often.
You can see how the VVIX already breached $115 and then pulled back during the market drop yesterday.
VVIX Daily Chart
This is an important clue that the market has found a bottom. But let’s take a look at the indexes themselves.
Both stocks and markets use support zones to turnaround. These areas are the highest probability areas for price to stop its downtrend. Is it guaranteed? No. They are simply high probability areas.
Here’s how I like to look for these areas. Stocks and markets like to trade back and forth in a range. When this happens for a while and then takes off, this area becomes support. This was the last place that investors accumulated long positions, so they’re likely to defend them when they return.
When I look at the SPY, I see the following places as areas the market should find support.
SPY Daily Chart
Each of these areas represents places where the SPY traded in a range, even for a few days. Now I’ve drawn lines for these spots that align with the swing low points. However, price could stop anywhere within that range.
Pro tip – The longer a chart spends trading in a range, the stronger that level becomes. The $300 level should be much stronger than any of the other levels above it.
You might be surprised that a simple concept would work so well. But big, round numbers work really well for support and resistance levels. I don’t know whether it’s because it’s easier to type in those orders or what. Yet, I find they work over and over again.
Notice how many of those lines land at $320, $305, and $300. Price loves to use these big numbers to make turnarounds.
The SPY, QQQ and DIA all like to trade together. Bonds and gold will often trade in the opposite direction. Real bottoms occur when all of these say the same thing.
What does that mean? You want to see intraday reversals in all the major stock indexes AND in bonds and gold. That means stocks reverse to move higher while bonds and gold flip to move lower.
Pro Tip – Expand your view beyond the major indexes. Look to sectors like healthcare (XLV), industrials (XLI), and others to give you additional confirmation of your assumptions.
Right now, the most likely support level looks to be $320 and then $300. Those are two big, round numbers with a lot of reasons to off support for the SPY. That doesn’t mean the market will stop on those numbers to a dime. Rather, they provide general zones to work with.
The standard deviation of a stock is a useful tool for investors to use when searching for their ideal stock. Some investors prefer a conservative approach, while others like to take a more aggressive route. The standard deviation helps to point them in the right direction.
A few key concepts to take note of regarding standard deviation are:
The standard deviation is a statistical measurement that analyzes the dispersion of a dataset in relation to its mean. It’s quantified as the square root of the variance. To calculate the standard deviation as the square root of the variance, the variation must be evaluated between the various data points in relation to the mean. When the data points are a greater distance from the mean, the dataset has a higher deviation. In other words, the more scattered the data points, the higher the standard deviation.
When using the standard deviation in a financial setting, such as applying it to stock market returns, it can assist in providing insight on past volatility of that stock. When the standard deviation is higher, it points to a larger variance between the stock’s prices and the mean. This points to a more vast price range. For example, a high standard deviation will appear for volatile stocks, while a lower standard deviation is present in stocks that are more consistent
When calculating the standard deviation, you first need to determine the mean and variance of the stock. To calculate the mean, you add together the value of all the data points and then divide that total by the number of data points.
To determine the variance, you take the mean less the value of the data point and square each individual result. Then you add up the squared results for one single total, which is then divided by the number of data points minus one. This result is known as the square root of the variance. This result is used to calculate the standard deviation. While these calculations can be completed on paper, the easiest way to perform them is by using Excel.
When it comes to stock prices, the data set is viewed in dollars and the variance in dollars squared. The standard deviation comes into play because dollars squared is not a helpful unit of measurement. In calculating the standard deviation of the stock, you get the square root of the variance, which returns the value back to its original form, making the data much easier to apply and evaluate.
When it comes to stock returns and investments, the standard deviation is used to determine market volatility and, therefore, risk. A higher risk stock will demonstrate an unpredictable price and a wider range. Stocks that stick close to their means, or range-bound stocks, are considered lower risk because investors can assume, with a fair amount of confidence, that the stocks practice a consistent behavior. When a stock has a wider range and tends to increase, decrease, or gap unpredictably, it’s viewed as a higher risk stock with the potential for a more significant loss.
While a greater risk can sound intimidating, it’s important to remember that when it comes to the stock market, risk isn’t necessarily a bad thing. The greater a stock’s risk, the greater the possibility of a hefty profit.
The use of standard deviation to determine risk in the stock market is applied assuming that most of the market’s stocks’ price activities follow a normal distribution pattern. When stocks are following a normal distribution pattern, their individual values will place either one standard deviation below or above the mean at least 68% of the time. A stock’s value will fall within two standard deviations, above or below, at least 95% of the time.
For instance, if a stock has a mean dollar amount of $40 and a standard deviation of $4, investors can reason with 95% certainty that the following closing amount will range between $32 and $48. This also means that 5% of the time, the stock’s price can experience increases or decreases outside of this range. When the stock’s standard deviation is high, it is most likely a highly volatile stock. When its standard deviation is low, it’s usually a reliable blue-chip stock.
In taking all this to mind, investors can assume that a low standard deviation points to a less risky investment, while a greater variance and standard deviation reflects a higher risk stock. While 95% of the time, investors can reasonably assume that a stock’s price will stay within two standard deviations of the mean, this is still a decent-sized range. The key idea to remember is that more potential outcomes, the more potential risk.
Standard deviation in investing usually appears in the likeness of Bollinger bands. Bollinger bands, created by John Bollinger in the 1980s, are a number of lines that assist in determining trends in specific stocks. The exponential moving average (EMA) is found at the center of these trend lines, and it shows the average price of the stock over a given period of time. The lines on both sides of this center range anywhere from one to three standard deviations away from the mean. When the stock’s price changes, the outer trend lines also change with the moving average.
While Bollinger bands can be applied in many useful ways, they are commonly used to determine the market’s volatility. Whenever a stock tends to experience significant volatility, the bands will appear further apart. When the volatility lessens, the bands will fall closer together and appear nearer to the exponential moving average. It’s not uncommon for charts that typically see narrow bands to experience random spikes in volatility — for example, after earnings reports or products are released.
A Bollinger band can be a useful chart in investing because it provides a visualization of the standard deviation and makes the identification of highly volatile stock as easy as a quick glance.
Standard deviation can be used throughout the financial world, but it is especially useful when it comes to investing in stocks and determining trading strategies. The use of standard deviation assists in measuring the volatility of the market and stocks as well as predicting stocks’ performance trends.
When it comes to investing, investors can reasonably expect an index fund to have a low standard deviation because the whole goal of an index fund is to match the index. Conversely, investors can expect an aggressive growth fund to have a higher standard deviation compared to standard stocks because the whole point of these funds is to generate exceptionally high returns.
There isn’t necessarily a better level of standard deviation. Some investors may prefer a low standard deviation, while others are attracted to stocks with a high standard deviation. The preferred standard deviation simply depends on the type of investment investors are looking for as well as the amount of risk they are willing to accept. When it comes to applying the standard deviation of a stock to a portfolio, investors should determine how much volatility they are comfortable with as well as their ultimate investment goals. Aggressive investors are typically more eager to take on high volatility stocks, while the more reserved investors tend to avoid them.
Analysts, advisors, and portfolio managers all use standard deviation as one of their top methods of measuring risk. The standard deviation is also listed by investment firms for their mutual funds and other various products. When a significant dispersion is evident, it means that the stock’s return is not sticking to expectations. The standard deviation is a very simple statistic to understand; therefore, it is commonly reported to investors and end clients.
If you’re looking to utilize standard deviation but aren’t sure where to start, the team at Raging Bull is ready and eager to help. Raging Bull is made up of experienced investors who will help you hit the ground running. From webinars to articles and a free trading handbook, you’ll have all the resources you need to enter the stock market with confidence.