case#255613668-Finance.docx

case#255613668-Finance.docx - Surname 1 Name Date Finance...

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Surname 1 Name Date Finance Corporate Finance Part 1: Apple Dividend Policy Even though Apple did not have a decent history of dividend payment considering Steve Jobs high divided-averse attitude; however, after his death, Tim Cook and company’s senior management has understood the investor’s sentiments and beginning 2012, company has been readily paying dividend to the shareholders. Below we have included the dividend payment history of Apple: 2013 2014 2015 2016 Dividend per share 1.63 1.81 1.98 2.18 Dividend Growth Rate 11.04% 9.39% 10.10% (Morningstar) Based on the above table, we can see that Apple has been following a stable dividend policy, which allows the company to pay a steady dividend even though earnings are volatile from year to year. As for Apple, since company’s earnings are volatile from quarter to quarter, following a stable dividend allows the company to design a long-term growth trajectory rather than adjusting dividend and other plans for near-term earnings volatility. The primary advantage of this dividend policy is that it allows the company’s management to incorporate subtle shifts into long-term business prospects and other opportunities.
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Surname 2 Baidu Dividend Policy China based search engine, Baidu has never declared any dividend till date.
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