June 26, 2025 a 12:46 pm
AAPL: Dividend Analysis - Apple Inc.
Apple Inc. offers a compelling investment opportunity through its steady dividend payments and consistent growth strategies. With a strong track record in increasing dividends and substantial market presence, Apple positions itself as a reliable dividend-paying stock. Investors looking for stability and moderate growth potential may find Apple a beneficial addition to their portfolio.
📊 Overview
The overview of Apple's dividend profile highlights its position in the technology sector, known for both innovative prowess and financial robustness. Review the key metrics below:
| Key Metrics | Details |
|---|---|
| Sector | Technology |
| Dividend Yield | 0.48% |
| Current Dividend Per Share | 0.99 USD |
| Dividend History | 23 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Examining Apple's dividend history reveals its commitment to rewarding shareholders consistently. This is pivotal for investors seeking long-term value through income equity.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.51 |
| 2024 | 0.99 |
| 2023 | 0.95 |
| 2022 | 0.91 |
| 2021 | 0.865 |
📈 Dividend Growth
Evaluating dividend growth is essential for understanding the company's future dividend potential. Steady growth reflects underlying financial strength.
| Time | Growth |
|---|---|
| 3 years | 4.60% |
| 5 years | 5.43% |
The average dividend growth is 5.43% over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
Payout ratio signifies how much of its earnings a company returns to shareholders as dividends. A balanced payout ratio indicates a company’s ability to sustain its dividend payments.
| Key Figure | Ratio |
|---|---|
| EPS-based | 15.30% |
| Free cash flow-based | 15.06% |
The EPS payout ratio of 15.30% and FCF payout ratio of 15.06% suggest that Apple has a conservative dividend payout approach, ensuring ample scope for reinvestment and growth.
✅ Cashflow & Capital Efficiency
Analyzing cash flow measures and capital efficiency is crucial to determine the sustainability of dividend payments and overall capital utilization.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.11% | 3.69% | 4.57% |
| Earnings Yield | 2.68% | 3.60% | 4.09% |
| CAPEX to Operating Cash Flow | 10.10% | 9.91% | 8.77% |
| Stock-based Compensation to Revenue | 3.06% | 2.83% | 2.29% |
| Free Cash Flow / Operating Cash Flow Ratio | 92.01% | 90.08% | 91.23% |
Apple shows consistent cash flow generation with strong capital efficiency, providing a strong foundation for ongoing dividend payments and strategic investments.
⚖️ Balance Sheet & Leverage Analysis
An evaluation of leverage ratios is vital in assessing a company's financial stability and its ability to meet obligations. Measures like Debt-to-Equity play a critical role here.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 2.09 | 1.79 | 2.61 |
| Debt-to-Assets | 32.62% | 31.51% | 37.56% |
| Debt-to-Capital | 67.64% | 64.13% | 72.33% |
| Net Debt to EBITDA | 0.66 | 0.64 | 0.83 |
| Current Ratio | 0.87 | 0.99 | 0.88 |
| Quick Ratio | 0.83 | 0.94 | 0.85 |
| Financial Leverage | 6.41 | 5.67 | 6.96 |
High leverage ratios suggest that although Apple highly utilizes debt, it maintains ample liquidity to cover current liabilities, underpinning its financial stability.
✨ Fundamental Strength & Profitability
Investigating returns and margins highlights Apple's efficiency in generating profits relative to sales and investments, ensuring continued shareholder value creation.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 164.59% | 156.08% | 196.96% |
| Return on Assets | 25.68% | 27.51% | 28.29% |
| Net Margin | 23.97% | 25.31% | 25.31% |
| EBIT Margin | 31.51% | 29.82% | 30.29% |
| EBITDA Margin | 34.44% | 32.83% | 33.10% |
| Gross Margin | 46.21% | 44.13% | 43.31% |
| R&D to Revenue | 8.14% | 7.80% | 6.66% |
Apple’s robust return metrics and consistent margins underscore its strategic effectiveness and operational efficiencies, presenting a clear picture of its profitability strength.
🔍 Price Development
🏆 Dividend Scoring System
| Category | Score (1-5) | Score Bar |
|---|---|---|
| Dividend Yield | 1 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Score: 30/40
🌟 Rating
Overall, Apple Inc. stands as a strong candidate for dividend investors, offering reliable performance, stable growth, and strategic financial management. It's highly rated for its dividend stability and payout approach, making it suitable for conservative investors seeking growth with a reliable income stream.