As an investor, you may be wondering, “Does Apple Inc stock pay dividends?” In this article, we will delve into the AAPL dividend history over the last five years as well as overall yield and payout dates. For some investors, finding the right dividend stocks like AAPL for your portfolio may be important because this extra income can substantially increase stock investing profits, reduce overall portfolio risk, may offer some tax advantages as well as help to preserve your purchasing power through reinvestment.
For some investors, finding the right dividend stocks like AAPL, for your portfolio may be important because this extra income can substantially increase stock investing profits, reduce overall portfolio risk, may offer some tax advantages as well as help to preserve your purchasing power through reinvestment.
With so many companies of such diverse types, like Apple Inc paying dividends, even investors who don’t necessarily focus on dividend policy as part of their strategy should stay updated on dividend plans and announcements. Whether dividends are currently part of your investment strategy or will prospectively become part of your overall objectives, you need solid go-to resources online where you can find valuable information about up-to-date information about Apple Inc stock dividends.
Read on to learn about Apple Inc stock dividends as well as grades based on certain key metrics as well as valuation, growth and strength to see whether this specific stock meets your investment needs.
Apple Inc’s Stock Dividend Yield
Apple Inc has been paying out quarterly dividends to its shareholders since June 15, 1987.
As of August 12, 2022, Apple Inc had a 0.5 compared to the Phones & Handheld Devices median of 0.0. The Apple Inc dividend yield was 0.6 last year.
From June 15, 1987, Apple Inc paid out quarterly dividends ranging from 0.12 to 0.23 in 2022. Over the past five years, the Apple Inc stock dividend yield has increased by an average of 1.6 per year.
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Apple Inc’s Dividend History
As a potential investor, you may be interested in evaluating Apple Inc stock dividend history before deciding if you want to purchase this security. Evaluating AAPL stock dividend history can help you understand how often this company pays dividends, how reliable they are in regards to their payouts, as well as if they are showing long-term growth.
In our analysis, we typically look at the last five years of data. Therefore, the Apple Inc stock dividend history includes information from 2017 to 2022. An investor can look at Apple Inc stock dividend history growth which is expressed by the Dividend Yield, EPS Dil Cont. and Sales Growth. The AAPL stock dividend history has been yield over the past five years at: 1.6, diluted earnings per share at: 22.0 and sales growth at: 11.1. You can use these three percentages to evaluate the overall Apple Inc stock dividend history over the past five years to compare to how it is performing in 2022.
Analyzing Apple Inc stock dividend history is a good first step to see if this company’s payments are sustainable. However, researching dividends requires more than simply viewing the company’s dividend dates, you should also investigate the company’s financials as well as other metrics to determine if you should invest or not.
About AAPL Dividend Grades
Evaluation of AAPL dividends requires access to large amounts of data as well as the knowledge and time to sift through it all. Assigning a grade to AAPL dividends looks at in-depth financial ratios and metrics, official filings or statements as well as past dividend history and growth. To help individual investors with that daunting task, AAII created the Dividend Investing Grader, a screening and strategy tool that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels.
AAII’s proprietary Dividend Grader assigns each stock an intuitive A–F grade for each of the three pillars: value, growth and strength in regards to dividends. The DI Grader aims to rank securities like Apple Inc, based on all three pillars, which provides the investor with useful metrics for judging whether a dividend-paying stock is attractive or not. In this article, we’ll take a closer look at Apple Inc dividends for value, growth and strength qualities.
Apple Inc Stock’s Dividend Valuation
When evaluating Apple Inc stock dividends, you’ll want to first look at valuation. This is a key component in seeking attractive dividend-paying stocks. Stock prices tend to fluctuate between high and low extreme valuation levels, and these relationships can be used to determine a stock’s value range. The most important valuation metric used in the Dividend Grader is the relative dividend yield.
Because the primary valuation measure for the Dividend Grader is relative dividend yield, we’ll be going into depth on this specific metric for AAPL stock dividends. The Apple Inc stock dividend yield can be used to calculate a valuation estimate, indicating if this stock is expensive relative to its historical norm. By using the Dividend Grader’s valuation metrics, you can effectively understand if dividend AAPL stock is considered undervalued with current yields above their five-year historical average, yet that are expanding their dividend payments at a greater-than-average rate.
The Apple Inc stock dividend valuation score is at: 80 which translates into a Dividend Valuation Grade of D and is considered to be Expensive.
The Dividend Valuation Score is the percentile rank of the average of the percentile ranks of the relative dividend yield and shareholder yield. The score is not variable, meaning it must consider both relative dividend yield and shareholder yield to be valid. To be assigned a Dividend Valuation Score, stocks must have a valid (non-null) and corresponding ranking for both of the variables. You can monitor the AAPL stock dividend yield over time to assess if it has sustainable valuation.
Stocks with a value score from 0 to 20 are considered deep value, those with a score between 21 and 40 are a good value and so on.
Apple Inc Stock’s Dividend Growth
When analyzing Apple Inc stock dividend growth, you’ll want to look at overall growth from the most recent 12-month period as well as average annualized dividend growth rate over the last five years. The Apple Inc stock dividend’s growth in revenue and earnings should be analyzed. Profit margins, earnings surprises and estimates, Apple Inc stock dividend history as well as dividend growth trends also need to be looked evaluated. These growth trends matter because a company’s success is driven by its ability to generate sales and convert the revenue into earnings and cash flow.
The Apple Inc stock dividend’s growth score is at: 85 which translates into a Dividend Valuation Grade of D, which is Very Strong.
AAII assigns AAPL stock dividend its growth score by adhering to a rule that states that it must have a valid (non-null) percentage and corresponding ranking for at least three of the four growth components which include: Growth in cash flow from operations over the most recent 12-month period, return on assets (ROA) relative to the sector median, dividend growth over the most recent 12-month period as well as average annualized dividend growth rate over the last five years.
Apple Inc Stock’s Dividend Strength
In order to determine the financial strength of a company like Apple Inc, you need to understand its underlying financials and its ability to generate cash flow, pay its obligations and return capital to shareholders. A company’s leverage ratios, cash flows and payout ratios (earnings and cash flow) can provide useful insights.
Two important metrics we look at to determine the Apple Inc stock dividend a Strength Score and Grade are based on are:
- Earnings payout ratio relative to its sector median
- Dividend sustainability score
Investors should look at these metrics to understand if a company is generating enough cash to cover its dividends year to year. If it is not, the dividend payment may not be sustainable.
The Apple Inc stock dividend’s financial strength score is at: 83 which translates into a Dividend STRENGTH Grade of A, which is Very Strong.
It’s important to understand what goes into calculating the AAPL stock dividend strength score and grade. There is little point in seeking out dividend-paying stocks like Apple Inc unless the dividend is secure and expected to grow. Many companies pay dividends, but those that can sustain their dividend payments are more desirable to income investors.
AAPL Stock’s Dividends: Bottom Line
Now you know more about AAPL stock dividends, you can continue on to evaluate this stock to see if it could be a right fit for your portfolio. Overall, the Apple Inc stock dividend yield has been 0.5. The AAPL stock dividend history has been 1.6, which ranks in the 81 among all U.S.-listed dividend-paying stocks. Apple Inc stock dividend also has a Value Grade of D, a Growth Grade of A and a Strength Grade of A.
If you’re considering adding Apple Inc stock dividends to your overall investment strategy and portfolio, make sure to do your own research and due diligence.
AAII’s Dividend Investing strategy and portfolio identify the best dividend investment opportunities by focusing on a select universe of well-financed companies that have the following characteristics:
- A long history of earnings and dividend growth
- Positive free cash flow
- Low to reasonable valuations
- A long history of earnings and dividend growth
- A solid outlook for both price appreciation and higher dividends in the future
At AAII, we pride ourselves in providing individual investors with the information, resources and tools they need to be confident in their financial decisions. So, before you invest in Apple Inc stock dividends, ensure you have the right resources to conduct your analysis. Our Dividend Investing subscription gives members key screens and strategies to learn how to find stocks that fit your portfolio. Dividend Investing also gives members a real-model portfolio with in-depth, time-tested rules that can help you outperform the market and receive quarterly dividends. Learn more and subscribe to AAII’s Dividend Investing today.
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