"Apple may face many disturbances in today's economy, but the company is perfectly positioned for weaker stock prices," writes Stone Fox Capital for Seeking Alpha. "The tech giant chose to make a minimal dividend increase this year to continue focusing on stock buying in a perfect move to highlight the minimal effect of dividends on total stock returns."
"This year, the company surprised the market by reducing the annual yield," writes Stone Fox Capital. "The next-year quarterly dividend was increased to $ 0.77, up or $ 0.04 or ~ 5%."
"Annual dividend increases over the past 5 years were over 7% with at least a 1
" In addition, Apple faces all kinds of threats to the business model from App Store Consumer Goods costs to high tariffs on Chinese goods that will fluctuate wildly, "says Stone Fox Capital. "The best way to counteract stock volatility is to use the weakness to reward shareholders through reduced holdings and higher ownership positions … The key to investor takeaway is that the small dividend increase is an excellent move to focus equity return on stock purchases.
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MacDailyNews Take: Hard cash is nice, but Apple has the ability to strengthen the stock price, if necessary, through runway times, more valuable to long-term shareholders.