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Pro Analysis

Apple needs to hike dividend to allow investors to ride out 'rough patches,' analyst says

A customer touches the screen of an iPhone 7.
Chesnot | Getty Images
A customer touches the screen of an iPhone 7.

Drexel Hamilton told investors Apple needs to significantly raise its dividend to appease investors as the research firm's latest supplier data on the iPhone points to deteriorating demand and therefore more stock volatility in the near term.

"Most of the companies in our Apple Monitor have reported November sales that came in below historical seasonality," analyst Brian White wrote in a note to clients Wednesday.

"Even though we believe Apple is on the verge of returning to growth in 1Q:FY17, the iPhone 8 can't come soon enough for some investors and we believe a much richer dividend yield should be considered."