Apple’s stock has a yield of 1.73%. That may seem low, but it’s almost as high as the yield on the 10-year U.S. Treasury note, which lacks the iPhone maker’s potential to generate outsized price gains. You may not think of Apple Inc. AAPL, +0.38% as a dividend stock, but, in fact, it pays a quarterly dividend of 47 cents a share, and the company has become remarkably friendly to shareholders, with stock repurchases causing its share count to decline by 6% during fiscal 2014. That helped push the company’s earnings per share up by 14%. (Revenue rose at half that rate.) So Apple will only become more attractive as a dividend-paying stock.
Why are U.S. rates still declining? After all, the Federal Reserve ended its massive “QE3” bond-buying program, which was meant to hold down long-term rates, a few months ago. Interest rates are declining because the dollar is rising, owing to the decline in prices for oil and other commodities, as well as uncertainty over the euro because of slowing economic growth, the crisis in Greece and the European Central Bank’s own massive bond-purchasing program, which ECB President Mario Drahi said on Thursday will total 60 billion euros ($69 billion) a month through the end of 2015. So the dollar’s “safe-haven” status could spell happiness for the broader U.S. equity market, but especially for dividend stocks, because many yield-hungry investors have nowhere else to go.
Source: Market Watch
Related Articles:
- Bonds Look Morbid When Compared To These Dividend Stocks
- My 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
- The Best Dividend Stocks In The World
- 12 Dividend Stocks With 50+ Years of Consecutive Increases
- 8 Dividend Stocks With A 15% Yield In 15 Years
Dividend Stocks To Help You Rise Above Low Interest Rates
Posted by D4L | Thursday, February 26, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.