AAPL: Apple Dividend Analysis

Apple Inc. (AAPL) resumed its dividend funds in 2012 after a 17-year hiatus. On the finish of its fiscal 12 months 2011, it had amassed money and money equivalents of over $25 billion. That money hoard has grown to $35 billion as of the tip of the fiscal 12 months 2021.

Since then, Apple has seen a gentle rise in income and earnings, permitting it to extend annual dividends. It is also managed to steadily improve its dividend fee to shareholders.

As of Q1 2022, it was paying a $0.22 per share quarterly dividend, which gave the inventory a 0.55% dividend yield.

Dividend Payout

Apple’s dividends paid totaled $14.1 billion for the fiscal 12 months 2020 and $14.4 billion in 2021. The web revenue for 2020 was $57.4 billion, which put the dividend payout ratio at 25% for 2020. In 2021, the payout ratio was 15.2% primarily based on $94.7 billion in internet revenue. For 2018 and 2019, the dividend payout ratio was 26% and 23%, respectively.

For the previous a number of years, Apple’s dividend payout ratio has stayed comparatively regular. Within the meantime, its money hoard of money and money equivalents stays comparatively excessive at $35 billion as of the tip of FY 2021.

Dividend Yield

Whereas dividend payout is a measure of monetary energy typically utilized in basic evaluation of inventory investments, the dividend yield is extra helpful for traders with an awesome objective of receiving funding dividends.

For dividend traders, inventory worth appreciation is often a secondary precedence to the dividend revenue. A inventory’s dividend yield is the annual dividend divided by the inventory’s buying and selling worth. Apple’s annual dividend in 2021 was $0.88 ($0.22 paid quarterly). Based mostly on Apple’s inventory worth as of March 1, 2022 of round $163 per share, the dividend yield is roughly 0.50%.

Though Apple’s annual dividends have persistently elevated within the years after the corporate’s 2012 dividend reinstatement, its inventory has—at occasions—risen at a lot quicker charges, probably leading to its dividend yield being much less aggressive for traders inquisitive about dividend revenue.

Dividend Progress

For many firms, a dividend lower is an exception, relatively than the norm. Ideally, firms improve their dividends over time, assuming their income and earnings development can assist it.

Apple’s quarterly dividend paid throughout the first quarter of 2022 was $0.22, a 7% improve from the $0.205 paid throughout the first quarter of the 12 months earlier.

Through the second quarter of 2016, Apple paid a split-adjusted quarterly dividend of $0.1425, suggesting a 9.1% annualized development price in Apple’s quarterly dividend during the last 5 years. For the fiscal 12 months 2018, Apple paid a split-adjusted annual dividend of $0.68. For 2019, its annual dividend was $0.75, and in 2020 it was $0.795. Its annual dividend grew by 10.3% from 2018 to 2019, and 10.6% from 2019 to 2020.