July 12, 2025 a 12:46 pm
AAPL: Dividend Analysis - Apple Inc.
Apple Inc. is a leading technology firm known for its innovation and robust financial performance. With a modest dividend yield, it provides a strong growth proposition for long-term investors. Apple's consistent dividend history and strong fundamentals position it as a favorable choice for dividend-focused portfolios.
📊 Overview
Apple operates in the technology sector, offering products and services that are integral to modern digital life. Its dividend yield stands at 0.48%, indicating limited immediate income potential but reflecting its substantial market capitalization of over $3 trillion.
| Detail | Value |
|---|---|
| Sector | Technology |
| Dividend yield | 0.48% |
| Current dividend per share | 0.99 USD |
| Dividend history | 23 years |
| Last cut or suspension | None |
📉 Dividend History
The consistency in Apple's dividend payments highlights its stable cash flow and commitment to rewarding shareholders. This long-standing history strengthens investor confidence and showcases sustainability.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.51 |
| 2024 | 0.99 |
| 2023 | 0.95 |
| 2022 | 0.91 |
| 2021 | 0.865 |
📈 Dividend Growth
Apple's dividend growth is modest, with a 3-year growth rate of 4.60% and a 5-year rate of 5.43%. This indicates a consistent approach to gradual dividend increases, aligning with earnings growth.
| 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
The payout ratio is a crucial measure of dividend sustainability. Apple's EPS payout ratio is 15.30%, and its FCF payout ratio is 15.06%, both indicating a healthy balance between distributing profits and retaining earnings for growth.
| Key figure | Ratio |
|---|---|
| EPS-based | 15.30% |
| Free cash flow-based | 15.06% |
These low payout ratios suggest that Apple has ample room to sustain or even increase its dividends in the future.
⚖️ Cashflow & Capital Efficiency
Understanding the cash flow dynamics and capital efficiency is vital for assessing long-term dividend sustainability. Apple's financial strategies reflect its robust operational efficiency and capital allocation.
| Key figure | 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% | 90.09% | 91.23% |
Apple's cash flow metrics indicate strong operational cash generation capabilities, facilitating continued shareholder returns and reinvestment opportunities.
🔍 Balance Sheet & Leverage Analysis
Evaluating the balance sheet and debt ratios is critical to understanding a company's financial stability and risk exposure.
| Key figure | 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 | 0.82 | 0.99 | 0.88 |
| Quick Ratio | 0.83 | 0.94 | 0.85 |
| Financial Leverage | 6.41 | 5.67 | 6.96 |
Apple exhibits solid financial leverage, though its relatively high debt-to-equity ratio advises cautious monitoring. Nevertheless, its ability to cover interest payments adequately mitigates substantial risk.
💡 Fundamental Strength & Profitability
Assessing fundamental strength and profitability provides insight into the company's ability to generate returns on investments and maintain operational efficiency.
| Key figure | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 164.59% | 156.08% | 196.96% |
| Return on Assets | 25.68% | 27.51% | 28.29% |
| Margins: Net, EBIT, EBITDA, Gross | 23.97%, 31.51%, 34.44%, 46.21% | 25.31%, 29.82%, 32.83%, 44.13% | 25.31%, 30.29%, 33.11%, 43.31% |
| Research & Development to Revenue | 8.14% | 7.80% | 6.66% |
Apple's impressive profitability ratios and continuous investment in research and development underline its strong competitive position and focus on innovation.
🔄 Price Development
🏆 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 32/40
🔖 Rating
Apple Inc. presents a robust dividend profile, marked by consistent growth and stability. Despite a lower yield, its strong fundamentals underscore its viability as a sound long-term investment for dividend-focused portfolios.