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Apple is a dividend powerhouse, paying out over $13 billion in dividends in 2019. But how much dividend does Apple actually pay per share? We take a look at the numbers.
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Introduction
Apple Inc. (AAPL) paid a dividend of $0.73 per share on May 11, 2020 to shareholders of record as of May 8, 2020. This was an increase from the $0.63 per share that was paid in the same quarter last year.
Based on the closing price of $308.09 on May 8, 2020, this dividend yields 0.237%.
Apple has increased its dividend for eight consecutive years and has a five-year compound annual growth rate (CAGR) of 12.71%. The company has been paying dividends since 1987 and has a trailing twelve months (TTM) dividend yield of 1.52%. AAPL is a Dividend Aristocrat, having increased its quarterly payout for at least 25 consecutive years.
How Much Dividend Does Apple Pay?
Apple Inc. (AAPL) is one of the most popular and well-known companies in the world. The company pays a dividend to its shareholders, which is a portion of the company’s profits that are distributed to shareholders. As of May 2019, the dividend yield for Apple was 1.63%.
Dividend Yield
Dividend yield is the amount of a company’s annual dividend payment divided by its current stock price. Dividend yields are useful for income investors because they provide a regular return on their investment. For example, a company that pays an annual dividend of $1 per share and has a stock price of $100 would have a dividend yield of 1%.
Apple’s current dividend yield is 1.36%. That means that for every share of Apple stock you own, you will receive $1.36 in dividends every year. Based on Apple’s current share price of $111, that means you would receive a total dividend of $151 if you owned 100 shares of Apple stock.
Dividend yields can fluctuate over time, so it’s important to keep an eye on them. If a company’s dividend yield starts to drop, it could be Sign that the company is struggling financially and may not be able to continue paying its dividend in the future.
Dividend History
Apple has paid dividends since 1987 and typically pays an annual dividend in May. Apple’s dividend payout ratio is currently 25.4%, meaning that for every share of AAPL stock you own, you would receive $0.20 in dividends per year.
The company has a history of increasing its dividend each year, and it has increased its dividend every year since 2011. Based on the current dividend payout ratio and recent shareholder return, it is likely that Apple will continue to increase its annual dividend payment in the future.
Dividend payout ratio
The dividend payout ratio is a financial ratio that measures the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage.
The dividend payout ratio is used to evaluate whether a company is paying out too much of its earnings as dividends, or whether it is retaining too much earnings within the business. A high dividend payout ratio may indicate that a company is mature and not investing enough in growth opportunities, which could lead to declining shareholder value over time. Conversely, a low dividend payout ratio may indicate that a company is reinvesting most of its earnings back into the business, which could lead to higher shareholder value over time.
There is no perfect dividend payout ratio, and what is considered to be an optimal payout ratio will vary depending on the industry, the stage of the business cycle, and the specific circumstances of the company. For example, companies in industries with high capital requirements may have lower payout ratios than companies in industries with low capital requirements. Growth companies may have lower payout ratios than mature companies. And companies with large amounts of debt may have lower payout ratios than companies with little debt.
In general, however, dividend-paying stocks tend to outperform non-dividend-paying stocks over the long run. This outperformance is due to the fact that dividends provide a level of downside protection during market declines and also offer investors a source of income during periods of market stagnation.
Final thoughts
Now that you know how much Apple pays in dividends, you might be wondering whether or not the stock is a good investment. After all, if a company isn’t paying out much in dividends, that might be an indication that its earnings are being reinvested back into the business.
However, there’s no simple answer to this question. While a dividend is one factor might want to consider when making an investment decision, it’s far from the only thing you should look at. You’ll also want to research the company’s financial stability, its competitive advantages, and its growth potential.
If you’re thinking of investing in Apple stock, or any other stock for that matter, be sure to do your homework before making a decision.
