AAPL: Apple Dividend Analysis (2023)

Apple Inc. (AAPL) resumed its dividend payments in 2012 after a 17-year hiatus. At the end of its fiscal year 2011, it had accumulated cash and cash equivalents of over $25 billion. That cash hoard grew to $35 billion by the end of fiscal year 2021.

Since 2012, Apple has seen a steady rise in revenue and earnings, allowing it to increase annual dividends. As of Q1 2022, it was paying a $0.22 per share quarterly dividend, which gave the stock a 0.55% dividend yield.

Key Takeaways

  • Tech stocks do not always pay a dividend but as Apple, Inc. has matured, it has become a reliable dividend stock.
  • Dividend growth models can be used to help value stocks in the market.
  • As of Q1 2022, Apple's dividend yield was 0.55%.
  • During the first quarter of 2022, Apple paid a $0.22 per share dividend—this was a 7% increase from the $0.205 per share dividend paid in the first quarter of 2021.
  • Apple's quarterly dividend has grown by an annualized rate of 9.1% from the second quarter of 2016 to the first quarter of 2022.

Dividend Payout

Apple's dividends paid totaled $14.1 billion for the fiscal year 2020 and $14.4 billion in 2021. The net income for 2020 was $57.4 billion, which put the dividend payout ratio at 25% for 2020. In 2021, the payout ratio was 15.2% based on $94.7 billion in net income. For 2018 and 2019, the dividend payout ratio was 26% and 23%, respectively.

For the past several years, Apple's dividend payout ratio has stayed relatively steady. In the meantime, its cash hoard of cash and cash equivalents remains relatively high at $35 billion as of the end of FY 2021.

Is Apple's Dividend Low?

Apple's dividend isn't low when compared to dividends paid by other companies in the tech sector. What's more, it's common for growth companies, which Apple is still considered, to reinvest more cash back into the company instead of paying higher dividends.

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Dividend Yield

While dividend payout is a measure of financial strength often used in fundamental analysis of stock investments, the dividend yield is more useful for investors with an overwhelming goal of receiving investment dividends.

For dividend investors, stock price appreciation is usually a secondary priority to the dividend income. A stock's dividend yield is the annual dividend divided by the stock's trading price. Apple's annual dividend in 2021 was $0.88 ($0.22 paid quarterly). Based on Apple's stock price as of March 1, 2022 of around $163 per share, the dividend yield is approximately 0.50%.

Even though Apple's annual dividends have consistently increased in the years after the company's 2012 dividend reinstatement, its stock has—at times—risen at much faster rates, potentially resulting in its dividend yield being less competitive for investors interested in dividend income.

At just around 0.5%, Apple's dividend yield may seem relatively low. However, Apple is still considered to be a growth company. Therefore, it reinvests its retained earnings into developing new projects, acquiring companies, and other growth opportunities. Indeed many tech stocks, and growth stocks in general, do not pay any dividends.

Dividend Growth

For most companies, a dividend cut is an exception, rather than the norm. Ideally, companies increase their dividends over time, assuming their revenue and earnings growth can support it.

Apple's quarterly dividend paid during the first quarter of 2022 was $0.22, a 7% increase from the $0.205 paid during the first quarter of 2021.

During the second quarter of 2016, Apple paid a split-adjusted quarterly dividend of $0.1425, suggesting a 9.1% annualized growth rate in Apple's quarterly dividend over the last five years. For the fiscal year 2018, Apple paid a split-adjusted annual dividend of $0.68. For 2019, its annual dividend was $0.75, and in 2020 it was $0.795. Its annual dividend grew by 10.3% from 2018 to 2019, and 10.6% from 2019 to 2020.

AAPL Dividend History (from August 2014)

Does Apple Pay a Dividend?

Yes, AAPL has paid a quarterly dividend since 2012. The company also paid a quarterly dividend from November 1988 to November 1995 before suspending it for seventeen years.

(Video) Apple (AAPL) Stock Analysis: Is It a Buy or a Sell? | Dividend Investing

How Often Does Apple Stock Pay a Dividend?

Apple stock pays a dividend four times a year. Its quarterly dividend has been payable during February, May, August, and November of each year.

Why Is Apple’s Dividend So Low?

For a high-tech growth company, Apple's dividend is not really that low. Alphabet (Google), for example, does not pay any dividend. Nor do Meta (Facebook), Tesla, or Netflix. Some comparable larger, mature tech companies also pay low dividends, such as Nvidia (0.16% dividend yield) and Microsoft (0.83% dividend yield). Instead of paying higher dividends, Apple and these companies use retained earnings to reinvest in the company and its growth opportunities.

Article Sources

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  1. CNN. "Apple Announces Dividend and Stock Buyback."

  2. Apple. "2021 Form 10-K."

  3. Apple. "Dividend History."

  4. Apple. "Apple Reports Second Quarter Results."

  5. U.S. Securities and Exchange Commission. "FORM 10-K AAPL 2020."

  6. U.S. Securities and Exchange Commission. "Form 10-K AAPL 2018."

  7. U.S. Securities and Exchange Commission. "Form 10-K AAPL 2019."

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Does Apple pay a good dividend? ›

AAPL pays a dividend of $0.23 per share. AAPL's annual dividend yield is 0.63%. When is Apple ex-dividend date? Apple's previous ex-dividend date was on Feb 09, 2023.

Why does Apple pay such a low dividend? ›

Having paid increasing quarterly cash dividends since 2012, Apple is a dividend stock. 2. However, its dividend yield is low because of the rapid rise in Apple's stock price. Thus, not providing much income per dollar invested.

What is the average dividend payout for Apple? ›

Historical dividend payout and yield for Apple (AAPL) since 1989. The current TTM dividend payout for Apple (AAPL) as of March 02, 2023 is $0.92. The current dividend yield for Apple as of March 02, 2023 is 0.63%.

What is the best paying dividend stock? ›

Most Recent Earnings of Dividend Stocks
  • T. AT&T. Jan 25, 2023. ...
  • XRX. Xerox. Jan 26, 2023. ...
  • IBM. International Business Machines. Jan 25, 2023. ...
  • CVX. Chevron. Jan 27, 2023. ...
  • ET. Energy Transfer. Feb 15, 2023. ...
  • HESM. Hess Midstream Partners. Jan 25, 2023. ...
  • ARCC. Ares Capital. Feb 07, 2023. 2022 (Q4) ...
  • EOG. EOG Resources. Feb 23, 2023. 2022 (Q4)

Is it smart to pay dividends? ›

Stocks that pay dividends can provide a stable and growing income stream. Dividends on common stock — like any investment — are never guaranteed. However, dividends are more likely to be paid by well-established companies that no longer need to reinvest as much money back into their business.

Why is it good to not pay dividends? ›

Investing in Stocks without Dividends

Companies that don't pay dividends on stocks are typically reinvesting the money that might otherwise go to dividend payments into the expansion and overall growth of the company. This means that, over time, their share prices are likely to appreciate in value.

What is a good dividend yield? ›

The No. 1 consideration in buying a dividend stock is the safety of its dividend. Dividend yields over 4% should be carefully scrutinized; those over 10% tread firmly into risky territory.

Is Apple a dividend growth? ›

2022 was $0.23. During the past 12 months, Apple's average Dividends Per Share Growth Rate was 5.20% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 6.30% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 8.20% per year.

What is the price prediction for Apple stock? ›


The 37 analysts offering 12-month price forecasts for Apple Inc have a median target of 173.00, with a high estimate of 195.00 and a low estimate of 116.00. The median estimate represents a +14.51% increase from the last price of 151.08.

What is Apple's dividend yield over the years? ›

For 2019, its annual dividend was $0.75, and in 2020 it was $0.795. Its annual dividend grew by 10.3% from 2018 to 2019, and 10.6% from 2019 to 2020.

Can you live off of dividends? ›

Is it possible to live off dividends? Yes, some people are able to cover their expenses with cash flow from dividend income. It's not easy, and it takes a long-term focus, but it's definitely possible.

How do I make $1000 a month in dividends? ›

To generate $1,000 per month in dividends, you'll need to build a portfolio of stocks that will produce at least $12,000 in dividends on an annual basis. Using an average dividend yield of 3% per year, you'll need a portfolio of $400,000 to generate that net income ($400,000 X 3% = $12,000).

What is the safest stock to invest in? ›

If you want a completely safe investment with no chance you'll lose money, Treasury securities or certificates of deposit (CDs) may be your best bet.

When should you not pay a dividend? ›

A company that is still growing rapidly usually won't pay dividends because it wants to invest as much as possible into further growth. Mature firms that believe they can increase value by reinvesting their earnings will choose not to pay dividends.

What is the downside to dividend stocks? ›

Some experts criticize dividend producing stocks because dividend payments are taxed twice. Taxes are paid by the corporation and you, the investor, must pay personal income tax on dividends earned over the course of a given tax year.

Are dividend stocks good during inflation? ›

Dividend payers are good investments in inflationary times because they tend to have sustainable and relatively predictable cash flows. These cash flows are the lifeblood of payouts to investors and offer a stream of steady income to support returns—if they can be maintained.

How many dividend stocks should I own? ›

There is no hard and fast rule for how many dividend stocks to start a portfolio, but a good starting point is to aim for a minimum of 10. This will give you a good mix of different companies and sectors and help to diversify your risk.

Do I get taxed on dividends? ›

How Are Dividends Taxed? Yes – the IRS considers dividends to be income, so you usually need to pay taxes on them. Even if you reinvest all of your dividends directly back into the same company or fund that paid you the dividends, you will pay taxes as they technically still passed through your hands.

Are dividends still better than salary? ›

Paying yourself in dividends

Unlike paying salaries, the business must be making a profit (after tax) in order to pay dividends. Because there is no national insurance on investment income it's usually a more tax efficient way to extract money from your business, rather than taking a salary.

Is 7% a good dividend yield? ›

Dividend yield can help investors evaluate the potential profit for every dollar they invest, and judge the risks of investing in a particular company. A good dividend yield varies depending on market conditions, but a yield between 2% and 6% is considered ideal.

What does a dividend yield of 7% mean? ›

The dividend yield is a financial ratio that tells you the percentage of a company's share price that it pays out in dividends each year. For example, if a company has a $20 share price and pays a dividend of $1 per year, its dividend yield would be 5%.

Is 6% a good dividend yield? ›

From 2% to 6% is considered a good dividend yield, but a number of factors can influence whether a higher or lower payout suggests a stock is a good investment. A financial advisor can help you figure out if a certain dividend-paying stock is worth considering.

What is Apple's 10 year dividend growth? ›

During the past 3 years, the average Dividends Per Share Growth Rate was 6.30% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 8.20% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 16.70% per year.

How much dividend does Warren Buffett make from Apple? ›

In his latest letter to Berkshire Hathaway shareholders, Buffett revealed that Apple paid $785 million in dividends to Berkshire in 2021. The total should be even greater in 2022, since Berkshire bought additional shares of Apple earlier this year.

What is Apple's growth rate next 5 years? ›

Analysis. Apple's revenue growth forecast is expected to average 5.7% over the next 5 fiscal years. Apple's is expected to deliver median revenue growth forecast of 6.9% over the next 5 fiscal years.

Is Apple a long term buy? ›

Apple's long-term positives outweigh rare earnings miss, Morgan Stanley says. Morgan Stanley analysts think Apple remains a buy, even after a top- and bottom-line miss. Apple's first year-over-year sales decline since 2019 owes much more to macro headwinds than underlying issues at the company, an analyst note observed ...

What will Apple stock price be in 2023? ›

Stock DateStock Price
March 03, 2023$151.03
March 02, 2023$145.91
March 01, 2023$145.31
February 28, 2023$147.41
97 more rows

Is Apple a Buy or Sell now? ›

Apple's analyst rating consensus is a Strong Buy. This is based on the ratings of 29 Wall Streets Analysts.

Is Apple consistently earning a profit? ›

According to Fortune Global's 500 list for the 2020 fiscal year, Apple was the most profitable company globally — so yes, Apple is profitable. The company's profit rode by 3.9% to hit $57.41 billion, outshining some of the biggest retailers in America.

Why doesn't Apple pay a higher dividend? ›

Instead of paying higher dividends, Apple and these companies use retained earnings to reinvest in the company and its growth opportunities.

Is Apple dividend low? ›

AAPL pays a dividend of $1.09 per share. AAPL's annual dividend yield is 0.73%. Apple's dividend is lower than the US industry average of 1.99%, and it is lower than the US market average of 3.89%.


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