Apple and AT&T, strangely, both pay a $0.47 quarterly dividend ($1.88 annual). However, Apple, at $126.41 yields 1.5%, while AT&T, at $34.00 yields 5.5%. The change to the Dow will be a slight increase to yields (due to Visa, which yields 0.7%), as it goes from the current 2.29% to a proforma 2.33% (all 30 issues in the Dow pay a dividend). Apple, which started paying a dividend in March 2012, increased its dividend rate in April 2013 and in April 2014 (see chart – just happen to have one hanging around).
Proforma Dow as of last night: Apple added, AT&T deleted, Visa split 4-for-1
Apple’s dividend history – April 2015?
Rumors and talk of Apple’s addition to the Dow have been prevalent on the Street for years, and have grown since its 7-for-1 stock split in June 2014
However, the Dow is price weighted, with Apple being 5th in the Dow, as compared to 1st in the S&P 500 (by market value) and twice that of #2 Exxon – bottom line is Apple has weight in the Dow, but it’s not the giant it is in the S&P 500, so don’t expect its impact to be the same, in either direction.
This article was written by S&P Dow Jones Indices Senior Index analyst Howard Silverblatt.
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