jimmybob, Yes AAPL uses a percent as does every company that distributes dividends. This I have known for many years. I also know & have acknowledged that AAPL will be increasing their dividend each year. But where you seem to get lost & confused at is when I referenced the dividing by 7. Apple even explained it that way on their Website as I said before, taking it from their Website and posting it in red. The dividend which follows Mays Distribution is the dividend AAPL talks about. Not all of them. Just that one. You take Mays divy of $3.29 per share & divide it by 7. Thus, this gives you forty seven cents (.47) per share for the "initial" divy past Mays. (The divy for August.) Each dividend "beyond" the one for August, will in fact resort back to being a "percent" of the stock price. That percent can go up or down at any given time at AAPL choosing. You asked me a question:
how does buying before the split lower your average???
Well, here is a "detailed" breakdown: The quantity & price per share is for "example" purposes only. If one buys 10 shares of AAPL stock before the 7:1 (seven for one) split and pays $560.00 per share, one would be spending $5,600.00 (fee's not included for the trade). One would now have 70 shares of AAPL once the new shares are distributed. Now that one has 70 shares available, you divide the cost you paid by the number of shares you own. This amount is $80.00 per share. This is called/referred to as averaging down your price per share. Yes, the total you paid out stays the same but you now have 60 additional shares that can be sold. So selling 10 shares at any given price per share opposed to selling 70 shares for the same amount, you are going to make more money selling 70 shares then if you only had 10.