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 less than $10 billion. That cash hoard has grown to almost $30 billion by the end of fiscal year 2024.

Since 2012, Apple has seen a steady rise in revenue and earnings, allowing it to increase annual dividends. As of Q4 2024, it was paying a quarterly dividend of 25 cents per share, which gave the stock a 0.42% dividend yield.

Dividend Payout

Apple's dividends paid totaled $15 billion for the fiscal year 2023 and $15.2 billion in 2024. The net income for 2023 was $97 billion, which put the 澳洲幸运5官方开奖结果体彩网:dividend payout ratio at 15.5% for 2023. In 2021, the payout ratio was 16.2% based on $93.74 billion in net income.

Apple's dividend payout ratio has stayed relatively steady and its cash hoard of cash and cash equivalents remains relatively high at about $30 billion as of the end of FY 2024.

Dividend Yield

While dividend payout is a measure of financial strength often used in fundamental analysis of stock investments, the 澳洲幸运5官方开奖结果体彩网:dividend yield is more useful for in🔥vestors with an overwhelming𒁏 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 2024 was 98 cents (25 cents paid in two quarters and 24 cents paid in two as well). Based on Apple's stock price as of Nov. 29, 2024, of around $237 per share, the dividend yield for 2024 is approximately 0.41%.

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.

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 fourth quarter of 2024 was 25 cents, a 4.17% increase from the 24 cents paid during the first quarter of 2024. Note that Apple's fiscal year ends at the end of September.

The Bottom Line

Apple is a large, prominent, and profitable company that pays out a dividend, making it an attractive option for investors, on top of its impressive stock price appreciation. While it may not pay out as high dividends as some other companies, when compared to other tech companies, it can be a good option for a tech dividend stock.