Analysis on Apple's Implement and Assessment of Dividend Policy

Abstract

Dividend policy is a means that a company uses to distribute its free cash to its shareholders. It is of importance step to determine how much free cash will be retained for firm growth and how much for shareholders. This article first examines financial conditions in Apple and Samsung in recent years. With the financial information, the article display how Apple make decision on its dividend policy. Also, relevant data are provided in charts and tables to analyze trajectory of Apple's dividend policy which are proved by later data. By comparing it with Samsung in dividend policy, readers are able to see how financial circumstances effect decisions making. As a result, Apple aims to hold a sustainable dividend payouts growth rate because financial risks will be minimized and more free cash can be used to invest in firm growth, such as technological innovation; however, Samsung aims to attract more investors and specialists, so it provides a lucrative dividend policy by increasing its dividend payouts rate. This will be at expense of Samsung's future investment on firm growth.