The Influence of Dividend Policy on the Company Value–Take Apple Inc for an Example

DOI

10.2991/aebmr.k.201128.041How to use a DOI?

Keywords

Dividend policy, Apple company, enterprise value, dividend impact

Abstract

Dividend policy is one of the core contents of company, it plays an important role in firm operating. Stable dividend payment is beneficial to convey the signal that the enterprise has good development and can attract more investment from shareholders. However, the long-term dividend payout can lead to the increase of the company’s leverage ratio. This point is always ignored in many studies. In order to have an intuitive discussion, this research will take Apple Inc as an example. Apple has a big difference before and after the dividend, for example, it can be seen in corporate value and dividend yield. This is why this research choose Apple company as an example. Apple firstly announced a dividend in 2012 and has continued to do so ever since. After that, Apple’s enterprise value has risen considerably and it gradually expanded the world market. However, the company’s debt level was much higher than past time. To find the relationship between them, the research used P/E valuation method, EV/EBITDA valuation method and NAV valuation method to calculate Apple’s value, then it found out that dividend policy not only have a certain effect on improving company value, but also increasing debt held. Therefore, this research predicted that dividend payment will improve firm’s value and make company grow steadily, while it makes company get higher debt than before. All the financial data used in the research were obtained from Apple’s annual report and finance official website.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ziyan Jin
PY  - 2020
DA  - 2020/11/30
TI  - The Influence of Dividend Policy on the Company Value–Take Apple Inc for an Example
BT  - Proceedings of the 2020 2nd International Conference on Economic Management and Cultural Industry (ICEMCI 2020)
PB  - Atlantis Press
SP  - 196
EP  - 200
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201128.041
DO  - 10.2991/aebmr.k.201128.041
ID  - Jin2020
ER  -