Understanding Apple Dividend Yield and Stock Performance

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Apple's dividend yield is a crucial metric for investors, but what exactly does it mean? A dividend yield of 1.3% means that for every $100 invested in Apple stock, investors can expect to earn $1.30 in dividend payments per year.

Apple's dividend history dates back to 2012, when the company initiated its dividend program with a quarterly payout of $2.65 per share. Since then, the dividend has been increased numerous times, with the most recent increase happening in 2020.

A dividend yield of 1.3% is relatively low compared to other dividend-paying stocks. However, Apple's strong financial performance and growing cash reserves make its dividend a attractive option for investors.

AAPL Historical Data

Apple's dividend yield has seen its fair share of fluctuations over the years, with the maximum annual increase reaching 13.99% in 2019.

The highest dividend yield Apple has ever offered was 1.97% in 2016, a significant jump from the previous year. In contrast, the minimum annual dividend yield was a relatively low 0.44% in 2024.

Here's a breakdown of Apple's dividend yield over the years:

AAPL Historical (Q&A)

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Apple's dividend yield has been on a downward trend in recent years, with a current yield of 0.43% that's -60.31% lower than its historical average of 1.08%. This is a significant decline from the peak of 0.63% in June 2016.

The dividend yield fluctuates quarterly, with a lowest point of 0.11% in the September 2024 quarter.

Here's a brief breakdown of Apple's dividend yield over the past few years:

Apple's payout ratio is a healthy 16%, which is lower than its historic averages of 16.6%, 19.6%, and 22.6% over the past three, five, and ten years, respectively.

AAPL Average

The current Dividend Yield of Apple Inc. is less than its 3-year, 5-year, and 10-year historical averages.

Apple's 3-year average Dividend Yield is a key metric to consider for investors.

Historically, Apple's 3-year average Dividend Yield has been a reliable indicator of its dividend payout strategy.

The company's 5-year average Dividend Yield is another important benchmark for investors to keep in mind.

Apple's 10-year average Dividend Yield is a long-term perspective that can provide valuable insights into the company's dividend growth potential.

Investors can use these historical averages to make informed decisions about Apple's dividend yield and its potential for future growth.

History

Credit: youtube.com, Apple Stock (AAPL) - Chart History since 1986

Apple Inc has a long history of paying dividends to its shareholders. The company's first dividend payment was in 2021, with a total payout of $0.865 per share.

The dividend payment schedule has remained relatively consistent over the years, with four payments made annually. The payment dates have also followed a predictable pattern, typically occurring in January, April, July, and October.

One notable trend in Apple's dividend history is the steady increase in dividend yield. From 2020 to 2025, the dividend yield has increased from $0.193 to $0.250 per share.

Here's a breakdown of Apple's dividend payments from 2020 to 2025:

Overall, Apple's dividend history suggests a commitment to sharing its profits with shareholders, with a steady increase in dividend yield over the years.

Payout and Yield

Apple's dividend payout is $0.24 quarterly, paid in February, May, August, and November. This payout has been consistent since 2012, with the company raising its dividend every year during that time.

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The dividend yield is a more important metric for investors focused on receiving dividend income. Apple's dividend yield for 2024 is approximately 0.41%, based on its stock price as of November 29, 2024.

In comparison to its peers, Apple's dividend yield is greater than LG Display Co., Ltd., Sonos, Inc., VIZIO Holding Corp., The Singing Machine Company, Inc., Wearable Devices Ltd., Koss Corporation, GoPro, Inc., Universal Electronics Inc., Turtle Beach Corporation, and Vuzix Corporation, but less than Sony Group Corporation and Panasonic Holdings Corporation.

Consider reading: Lazard Ltd Stock

Does Stock Pay?

Apple stock does pay dividends, with a quarterly payout of $0.24 per share, paid in February, May, August, and November.

The company has been paying quarterly dividends since 2012, after a 17-year hiatus from 1995 to 2012.

You can expect to receive a dividend payout every quarter, with the payment amount remaining the same at $0.24 per share.

Apple has raised its dividend every year since 2012, making it a reliable source of income for investors.

The company paid a quarterly dividend from November 1988 to November 1995, before suspending it for 17 years.

Payout Ratio

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Payout Ratio is a key metric for assessing the sustainability of dividend payments. A very high payout ratio can arise when a company's profits decline, forcing the company to manage with lesser funding for growth initiatives.

A payout ratio below 80% is often preferred by investors, with some exceptions. Apple, a technology company, maintains a low payout ratio of 16%, calculated with the last 12 months of dividend payments ($0.94) divided by the cumulative basic EPS over the prior four quarters ($6).

Apple's 16% payout ratio compares favorably to Microsoft's payout ratio of 28%. It also compares favorably to Apple's historic three-year, five-year, and ten-year average payout ratios, which are 16.6%, 19.6%, and 22.6%, respectively.

Investors should be cautious of companies with high payout ratios, as they may struggle to maintain dividend payments in the long term. Apple's low payout ratio suggests that the company is well-positioned to continue supporting its dividend payments.

Here's a comparison of Apple's payout ratio with its historic averages:

Yield

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A stock's dividend yield is the annual dividend divided by the stock's trading price. This is a key metric for investors focused on dividend income.

Apple's dividend yield for 2024 is approximately 0.41%, based on an annual dividend of 98 cents and a stock price of around $237 per share.

Dividend yield is a more useful metric than dividend payout for investors prioritizing dividend income over stock price appreciation.

Total Return

Total return is a way to measure how well a stock is doing, taking into account both its capital gains and dividends. It's a more complete picture than just looking at dividend yield or capital gains alone.

A stock with a huge capital gain often won't have a high dividend yield, and vice versa. Apple's dividend yield is a good example of this, as it's only 0.55%, lower than the S&P 500 index.

AAPL is actually a great example of why total return is so important. Over the last 15 years, the company has averaged a 25.1% annual return for its shareholders, making it a much more appealing investment than its dividend yield might suggest.

Microsoft's 15-year average total return is lower at 18.3%, despite its higher dividend yield. This shows that total return is a more accurate way to compare stocks.

Is Low?

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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.

Apple's dividend yield might seem low at first glance, but it's actually competitive within the tech sector. The company's focus on growth and reinvestment is a deliberate strategy to maintain its market position and drive future growth.

The tech sector as a whole tends to have lower dividend yields compared to other sectors, such as utilities or real estate. This is because tech companies often prioritize reinvestment over dividend payments.

Apple's dividend payout ratio is relatively low, which means the company is retaining a significant portion of its earnings to invest in future growth initiatives.

Comparison and Growth

Apple's dividend yield has been a consistent source of interest for investors. The company has a history of increasing its dividend payout over time.

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In the past decade, Apple's dividend has grown from $0.47 per share in August 2014 to $0.25 per share in November 2024, a 46.8% increase. This growth is a testament to the company's financial health and its ability to reward shareholders.

One notable trend is the frequency of dividend increases. Apple has increased its dividend 10 times since August 2014, with the most recent increase being 4.17% in the fourth quarter of 2024.

Here's a breakdown of the dividend increases since 2014:

The table above shows the dividend per share for each quarter since August 2014. As you can see, the dividend has increased steadily over time, with some quarters seeing larger increases than others.

Apple's dividend growth is a key factor in its appeal to income investors. By consistently increasing its dividend payout, the company demonstrates its commitment to rewarding shareholders and providing a stable source of income.

Broaden your view: Jp Morgan Income Etfs

Stock Information

Apple's stock has a dividend yield of 0.55%, which means if you spend $1,000 buying AAPL shares, your estimated annual dividend income is $5.50.

Credit: youtube.com, Apple (AAPL) - Dividend Stock Analysis

The stock's current price is $174.49, and it pays a quarterly dividend of $0.24. This results in an annual dividend payment of $0.96.

Microsoft's dividend yield, on the other hand, is 0.86%, which would give you an estimated annual dividend income of $8.60 if you bought $1,000 worth of MSFT shares.

Here's a comparison of the two stocks' dividend yields:

Apple's dividend yield may not be as high as Microsoft's, but it's still a decent return on investment.

Peers and Frequency

Apple's Dividend Yield is compared to its peers in the technology industry. Apple's Dividend Yield is greater than LG Display Co., Ltd., Sonos, Inc., VIZIO Holding Corp., The Singing Machine Company, Inc., Wearable Devices Ltd., Koss Corporation, GoPro, Inc., Universal Electronics Inc., Turtle Beach Corporation, and Vuzix Corporation.

However, Apple's Dividend Yield is less than Sony Group Corporation and Panasonic Holdings Corporation.

Peers

Apple Inc.'s Dividend Yield is compared to its peers in a specific way.

Close-up of financial graphs and digital tablet highlighting 2020 stock market crash.
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Apple Inc.'s Dividend Yield is greater than LG Display Co., Ltd. (0%), Sonos, Inc. (0%), VIZIO Holding Corp. (0%), The Singing Machine Company, Inc. (0%), Wearable Devices Ltd. (0%), Koss Corporation (0%), GoPro, Inc. (0%), Universal Electronics Inc. (0%), Turtle Beach Corporation (0%), Vuzix Corporation (0%).

It's worth noting that Apple Inc.'s Dividend Yield is less than Sony Group Corporation (0.59%) and Panasonic Holdings Corporation (2.45%).

How Often Do Stocks Pay?

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

Some stocks pay dividends more frequently than others, but Apple's quarterly schedule is a notable example of a regular payout frequency. Apple's dividend payments are a predictable and reliable source of income for shareholders.

Investors can count on receiving their dividend payments in February, May, August, and November each year.

Why and Explanation

Apple's dividend yield is attractive because it's one of the highest among major tech companies. This is due to Apple's stable financials and consistent cash flows.

Credit: youtube.com, 100 Shares of Apple and How Much Dividends It Paid in 20 Years

The dividend yield is calculated by dividing the annual dividend payment by the stock's current price. For Apple, this works out to a yield of around 1.5%.

A high dividend yield can be a sign of a company's financial health, but it's also important to consider the company's growth prospects. Apple has a history of investing in research and development, which has driven its growth over the years.

The company's dividend payout ratio is also a key metric to consider. Apple's dividend payout ratio is around 25%, which means the company is retaining a significant portion of its earnings to invest in the business.

Frequently Asked Questions

What is the dividend yield of Apple?

Apple's dividend yield for 2024 is approximately 0.41%. Despite its relatively low yield, Apple is still considered a growth company.

How much does Apple pay out in dividends?

Apple pays out a quarterly dividend of $0.25 per share, totaling $1.00 per share annually. This amount is subject to change and may be adjusted by the company.

Aaron Osinski

Writer

Aaron Osinski is a versatile writer with a passion for crafting engaging content across various topics. With a keen eye for detail and a knack for storytelling, he has established himself as a reliable voice in the online publishing world. Aaron's areas of expertise include financial journalism, with a focus on personal finance and consumer advocacy.

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