How Apple Raising Its Dividend Could Hurt Investors

According to a recent survey of analysts by Bloomberg, Apple could potentially give investors a very attractive dividend raise this year, by possibly as much as 56%, to a 3.7% yield. While this sounds fantastic and there is no question that Apple could afford the move, in this video Motley Fool tech and telecom analyst Andrew Tonner raises some concern. In his view, once such a precedent is set, giving anything less the next time there is a dividend increase could cause disappointment -- and a sell-off. Could a dividend increase of this size be a wolf in sheep's clothing?

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, after the company's major backslide recently, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

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Andrew Tonner owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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