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Investing

AT&T (T) And The Dividend Economy: Where Is Apple’s (AAPL) Yield?

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By Douglas A. McIntyre Published

AT&T (T) raised its dividend today and upped its share buy-back. The company’s stock is up almost 9% on the news, the most in five years, according to Bloomberg.

It looks like the old dividend is become a big item in a tough economy.

Who should follow suit? The cash rich and dividend poor. Even some of the companies with share buy-backs. It is easier for investors to see a benefit in a dividend hike than it is when shares are being bought over a long period.

Intel (INTC) has too much cash. It has a 1.6% yield. Moving that to 2% or better would help the stock.

Apple (AAPL) has $15 billion of cash in the bank. It never buys other companies. Apple could probably afford a $6 or $7 special dividend.

Verizon (VZ) should not want AT&T to get ahead of it. But, it already yields 3.8%, so it would not have to do much.

Cisco (CSCO) could certainly offer a 3% yield. With its shares down, it would be attractive.

Exxon (XOM) has an extremely modest yield of 1.5% and the company is minting money. The number should be 4%.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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