US Technology Industry: Dividend Payments to Continue Climbing, but Payout Ratios to Remain Low - Moody's Global Credit Research

US Technology Industry: Dividend Payments to Continue Climbing, but Payout Ratios to Remain Low

14 pages (5043 words) — Published Apr 22, 2013
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...+ We expect dividend payments by Moody's-rated US technology companies to reach $44.4 billion in 2013, up 35% from last year. Excluding Apple, we expect dividends to grow 20%, to $33 billion. Dividend payments relative to discretionary cash flow (cash flow from operations less capital expenditures) average a relatively low 20%, versus 50% for non-technology sectors. As a result, the rising payments won't affect ratings. + Apple, at $11.1 billion, will be the largest US non-financial dividend payer in 2013, ahead of Exxon and AT&T. The top 10 dividend paying technology firms will account for 84% of the sector's dividends, with Apple, Microsoft and Intel expected to comprise 54% of the total. + The number of rated dividend-paying technology companies reached 31 at the end of 2012, up from 20 in 2007. Apple and Dell were among the notable first time dividend payers in 2012. + Technology companies are well positioned to support dividend payments in the event of a downturn in the economy. Stable...

  
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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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MLA:
Moody's Global Credit Research. "US Technology Industry: Dividend Payments to Continue Climbing, but Payout Ratios to Remain Low" Apr 22, 2013. Alacra Store. Jul 30, 2014. <http://www.alacrastore.com/moodys-credit-research/US-Technology-Industry-Dividend-Payments-to-Continue-Climbing-but-Payout-Ratios-to-Remain-Low-PBC_152301>
  
APA:
Moody's Global Credit Research. (). US Technology Industry: Dividend Payments to Continue Climbing, but Payout Ratios to Remain Low Apr 22, 2013. New York, NY: Alacra Store. Retrieved Jul 30, 2014 from <http://www.alacrastore.com/moodys-credit-research/US-Technology-Industry-Dividend-Payments-to-Continue-Climbing-but-Payout-Ratios-to-Remain-Low-PBC_152301>
  
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