Chapter 15, Problem 5TCL

Use online resources to work on this chapter's questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions.

In this chapter's opening vignette, we discussed Apple's decision to establish a dividend payout policy in 2012 and its subsequent decisions to increase quarterly dividends and raise its repurchase program to $175 billion. Let's find out what has happened to Apple's (AAPL) dividend policy since the time of its original announcement. We can address this issue by relying on data provided on internet financial websites such as Yahoo! Finance, Morningstar.com, Google Finance, and MSN Money (www.msn.com/en-us/money/markets). You will have to use a combination of these sites to answer these questions.

5. Investors are more concerned with future dividends than historical dividends. Look at analysts' earnings estimates for the next year and the 5-year annual growth estimates. On the basis of these data, what would you expect Apple’s payout policy to be over the next 5 years? (Your answer will only be a guess based on current data.)