3 Stocks That Should Amp Up Their Dividends — And Soon!

Too much of these companies' cash is sitting on the sidelines

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3 Stocks That Should Amp Up Their Dividends — And Soon!

Apple

AppleLogo 3 Stocks That Should Amp Up Their Dividends    And Soon!In April, when Apple (AAPL) finally acquiesced to David Einhorn’s wishes and upped its payout 15%, the market cheered. What the market didn’t seem to recognize is that Apple’s improved dividend was — and is — still just a pittance.

Oh, the dividend yield of 2.9% is actually better than the market average. However, the $3.05 it plans to give back to investors over the course of the coming 12 months is only 7% of what Apple is projected earn next fiscal year.

In Apple’s defense, it also has cranked up its share-buyback program to a cap of $60 billion, which happens to be the biggest repurchase plan ever in the history of anything. Then again, with $39 billion in cash and short-term investments in addition to the $105 billion in longer-term investments it’s carrying on the books, the funds for the buyback are simply something that should have been given back to AAPL owners long ago.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/3-stocks-that-should-amp-up-their-dividends-and-soon/.

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