Apple Inc. is poised to boost its dividend by more than a half, according to analysts surveyed by Bloomberg, providing investors hit by a share slump with one of the highest yields in the U.S. technology industry.
Apple will probably lift its quarterly dividend 56 percent to $4.14 a share, for an annual payout of $15.7 billion, according to the average estimate from six analysts. The resulting yield of 3.7 percent would be higher than 86 percent of the companies in the Standard & Poor’s 500 Index paying dividends. Apple could fund a payout with existing cash flow without using profit from overseas, which can be subject to extra taxes, said Gene Munster, an analyst at Piper Jaffray Cos.
“There has been almost a $300 billion decline in value of this company,” Balter, based in Fox Island, Washington, said in an interview. “Any CEO at the helm of any U.S. or international company that sat at their desk idly while this happened would be shown the door.”
After commanding a premium for most of the past decade, Apple is trading at a discount of 34 percent to the Standard & Poor’s 500 Index on a price-earnings basis, according to data compiled by Bloomberg.