Apple is one of the most valuable companies in the world, and it pays out a healthy dividend to shareholders. But just how much apple pay in dividends? We take a look at the company’s dividend history find out.
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Introduction
Apple is one of the most dividends stocks in the market, but how much does it actually pay in dividends?
As of May 2019, Apple had a market capitalization of $937 billion and paid out $14.6 billion in dividends during its 2018 fiscal year. This works out to a dividend yield of 1.56%, which is relatively low when compared to other dividend stocks.
Despite having a low dividend yield, Apple is still one of the largest dividend payers in the market. In fact, it is currently the fourth largest dividend payer in the S&P 500 index.
Looking forward, it is expected that Apple will continue to increase its dividend payments at a rapid pace. Analysts expect that the company will pay out $17.2 billion in dividends during its 2019 fiscal year, which would represent a year-over-year increase of 17%.
Dividend Yield
Apple Inc. (AAPL) pays an annual dividend of $3.08 per share, yielding 1.37% at current stock prices.
Over the last five years, Apple has increased its dividend payments by an average of 12.79% per year. Based on the current dividend payout and recent history, there is a good chance that Apple will continue to increase its dividend payments in the future.
Assuming Apple maintains its current dividend payout ratio, earnings growth of just 5% per year would be enough to support continued 10% annual increases in the dividend payment. Even if earnings growth rates were to slow to just 3% per year, the company would still likely be able to increase dividends by 7-8% per year.
Dividend History
Apple Inc. (AAPL) has been paying dividends since 1987 and increased its dividend in May of 2018. Below is a dividend history chart for AAPL, dating back to 2010. For dividend investors, Apple is a popular stock to buy because it reinvested earnings into the company at a rapid pace, which helped fuel strong growth and share price appreciation.
As you can see from the chart, Apple’s dividend payments have increased significantly in recent years. In May 2018, Apple increased its dividend by 16%, marking the seventh time that the company has raised its dividend since it reinstated payments in 2012. Based on the current quarterly dividend rate of $0.63 per share, Apple is on track to pay out approximately $14 billion in dividends to shareholders in 2018. This would represent a 20% increase from the $11.6 billion paid out in 2017.
Dividend Reinvestment Plan
Apple’s dividend reinvestment plan (DRIP) lets investors automatically reinvest their cash dividends in additional shares of Apple stock. The program is available to shareholders who own Apple common stock in certificated or book-entry form. If you own your shares through a broker, you may be able to enroll in the DRIP through your broker.
Under the DRIP, cash dividends are used to purchase additional shares of Apple stock, which are then credited to your account. Share purchases made through the DRIP are subject to a $2 per share commission, with a minimum commission of $4 and a maximum commission of $20.
Final Thoughts
In summary, Apple currently pays a quarterly dividend of $0.77 per share, with a dividend yield of around 1.6%. Apple has increased its dividend payout each year since it reinstated dividends in 2012, and we expect the trend to continue in the years ahead. With a strong financial position and growing cash flow, Apple is well positioned to continue increasing its dividend at a healthy pace.
