Disclosure. I own Apple stock (ticker: AAPL).
Last night we heard Apple’s CEO and CFO share last quarter’s results. As a shareholder, I paid attention to the call — this time through Twitter. I have a sinus infection which prevented me from listening to the call live. I’m still waiting for the recording to become available, I will listen then.
An increasing dividend
This tweet caught my attention:
Luca: We are going to keep increasing the quarterly cash dividend every year.
— Neil Cybart (@neilcybart) April 26, 2016
(I’m referring to the tweet about the dividend, my blog software seems to present two tweets even though I’m linking to just one.)
Luca is Apple’s CFO. He can’t just say anything he wants. In fact, as I’m writing this another executive statement that comes to mind is a good example:
My album will never never never be on Apple. And it will never be for sale… You can only get it on Tidal.
— KANYE WEST (@kanyewest) February 15, 2016
In spite of that tweet, Kanye’s album was soon available everywhere else. He and Jay Z, owner of Tidal, are being sued.
In any case, Apple raised their dividend 10% last night. It now has a return of about 2.28%. They’ve committed to raising the dividend every year (for the time being) and have the cash to back it up (over $220 Billion). And, Tim Cook even mentioned that he thinks US tax reform is a matter of “when, not if” on the call, which means they’ll be able to bring back a lot of that cash from overseas.
I do not recommend stocks. I hope to educate people about investing, not advise them. So I want to be clear.
That said, these Apple statements are the sort of stuff that when using the Elephant’s Paycheck Blueprint we look for in picking our investments.