RBC Capital Markets analysts think that Apple should be able to bring its dividend by 50 percent, possibly by April 2015. That means increases to its share buyback program and its dividend. RBC Capital Markets says Apple could unveil a capital allocation plan worth about $65 billion, which would mean its dividend yield would go above two percent. If the tech giant offers a three-year update, analysts think that Apple could see a capital return program for between $150 billion and $200 billion.
In March 2012, Apple announced a cash return commitment of $45 billion over three years, with a divided plan of $1.51 per share. That was increased to $100 billion in April 2013 and then $130 billion in April 2014. Comments from Tim Cook lately have indicated a higher capital return for shareholders, and that Apple isn’t being a cash hoarder.
RBC told clients that beyond the new iPhone’s success, the launch of the Apple Watch, maintained growth in Apple Pay and services revenue gains will push Apple even higher.
