Tech giant Apple (NASDAQ:AAPL) has historically been an excellent investment. Its iPhones, iPads, Macs, AirPods, and other products are immensely popular. Its ecosystem draws customers in to spend more on many of Apple's products and services, allowing the company to easily grow its revenue by introducing new offerings to its existing user base.
The company has been generous with buybacks as well, with Apple's Board recently authorizing another $90 billion in share repurchases.
But as a dividend stock, it's hard to get excited about Apple. The company released earnings last week and upon another strong performance, it announced it would be increasing its dividend for an 11th consecutive year. That sounds great but the 4% increase means that investors are collecting $0.24 per share every quarter – just one cent more than what the company was previously paying. With the increase, the dividend is still yielding a very mild 0.58%. You would need to invest more than $172,000 into the stock just to collect $1,000 in dividends over the course of a full year. By comparison, the average stock on the S&P 500 pays 1.7%.
Apple is a great investment for many reasons, but its dividend isn't one of them. If you're looking for a recurring payout to rely on, you may be better off going elsewhere as Apple's yield is incredibly modest. And increasing its dividend by one cent at a time isn't going to do much to change that anytime soon. Apple's a good stock but don't let the dividend increases fool you – the payout still leaves much to be desired.
While the dividend yield on Apple stock is below average at just 0.49% right now, its yield could increase over the next two decades. If Apple doubles its dividend in each decade through 2043, investors who buys shares today could potentially earn a dividend yield on their cost basis approaching 2%.
Yes, AAPL's past year earnings per share was $6.43, and their annual dividend per share is $0.96. AAPL's dividend payout ratio is 14.89% ($0.96/$6.43) which is sustainable.
Apple Inc.'s ( AAPL ) dividend yield is 0.58%, which means that for every $100 invested in the company's stock, investors would receive $0.58 in dividends per year. Apple Inc.'s payout ratio is 14.95% which means that 14.95% of the company's earnings are paid out as dividends.
Apple has 21.12% upside potential, based on the analysts' average price target. Is AAPL a Buy, Sell or Hold? Apple has a conensus rating of Moderate Buy which is based on 16 buy ratings, 11 hold ratings and 2 sell ratings.
Apple's payout ratio of just 16% is extremely low. This is likely because the company has preferred to spend far more of its capital-return program on stock buybacks. Though Microsoft also buys back its stock, the company has recently been opting to spend more on its dividend than on repurchases.
There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 3.5. Our premium tools have predicted Apple Inc with 56% accuracy. Sign up for Apple Inc and we'll email you the dividend information when they declare.
Apple Inc (NASDAQ:AAPL), known for its robust capital returns, is another major contributor to Buffett's dividend income. The technology behemoth, with its consistent dividend payouts and aggressive stock buyback program, is expected to add approximately $878.9 million to Berkshire's dividend coffers.
The 30 analysts with 12-month price forecasts for Apple stock have an average target of 204.6, with a low estimate of 158 and a high estimate of 250. The average target predicts an increase of 21.70% from the current stock price of 168.13.
Apple stock has received a consensus rating of buy. The average rating score is Aaa and is based on 67 buy ratings, 30 hold ratings, and 2 sell ratings.
According to the latest TipRanks data, approximately 65.59% of Apple (AAPL) stock is held by retail investors. Who owns the most shares of Apple (AAPL)? Vanguard owns the most shares of Apple (AAPL). What is the significance of the ownership structure for a publicly traded company?
Apple stock is a "top pick" for 2024 and has potential upside of 36% as it gears up for the launch of an AI-enabled iPhone, according to Bank of America.
Based on those two decisions, it doesn't seem likely that Apple will choose to split its stock at its current level of around $200 a share. It has also been just three and a half years since its last split, and the shortest period between its stock splits has been nearly five years (2000 to 2005) so far.
A record gross profit margin of 44%. An operating income of $114 billion, with an operating profit margin of 30% (please see below for the graphic covering Apple profits analysis).
Introduction: My name is Clemencia Bogisich Ret, I am a super, outstanding, graceful, friendly, vast, comfortable, agreeable person who loves writing and wants to share my knowledge and understanding with you.
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