Does Announcement Make Apple A Good Potential Dividend Growth Stock?
By Tradevestor:Apple (AAPL) has finally declared a cash dividend. It just announced a quarterly dividend of $2.65 cents per share, beginning in the 4th quarter of 2012. At the current price of $600 per share, the yield works out to a paltry 1.7%. The management has also sanctioned a $10B buyback program.This article is specifically for Dividend Growth Investors (DGI), a very popular group on Seeking Alpha. So, does this news from Apple make it a good potential DGI stock? This article lists 3 factors that are in favor of Apple in this argument and 3 factors that are not so.Yes, Apple Has The Potential: A) Pay-out ratio: Dividend investors usually value the payout ratio as much as the actual dividend amount. That is because the payout ratio tells us if the company is stretching itself to pay out cash. At today's EPS of $35, Apple's payout ratio willComplete Story »