This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Dividend Hikes to Watch for This Earnings Season

Stocks in this article: DEPIIWMJWNAAPL

Apple

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

We'll start from the top -- with Apple (AAPL), the biggest publicly traded company in the world. Apple made waves in March, when the firm announced that it would be initiating a $2.65 dividend payout -- the first dividend from Apple since the mid-1990s. But with Apple sitting on a mountain of cash, the move made more sense than most other uses of the firm's bank account. Even though this stock has been under pressure for the past few months, there's still reason to believe in shares of AAPL right now.

>>2 Stocks That Will Double in 2013

Apple enjoys stellar positioning in the electronic device market. Its iPhone, iPad and iPod lines remain massively popular, its online media distribution arm ranks as the biggest in the world, and it's literally the only PC maker that's able to command premium pricing in this market. By integrating its mobile platform across all devices, the firm makes customers much more likely to stick with the iOS universe than switch to other offerings that don't have the same compatibility. That's also contributed to the "Halo effect" that's spurred iPhone and iPod adopters to buy Macintosh computers.

The demand for Apple's products right now means that the firm enjoys bigger margins than most other handset makers, and while that's not guaranteed to last forever, Apple is going to be hard to dethrone.

From a financial standpoint, Apple remains in stellar shape. The firm boasts $121 billion in cash and investments, giving it ample wherewithal to keep emphasizing shareholder yield through buybacks and dividends. So far, Apple has managed to avoid the tech sector's favorite misstep of overpaying for big acquisition targets, an easy trap to fall into for firms with more cash than options. Corporate culture has a lot to do with that, and Apple remains the cash-rich firm that poses least stewardship risk in the sector.

Instead, it looks likely to Apple to use that cash on a dividend hike in 2013. Until then, the firm pays a $2.65 dividend for a 2.02% yield. Keep an eye on January 23 earnings.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs