Key Points
-
The growth company behind the world’s most popular smartphone began paying dividends to its shareholders again all the way back in 2012.
-
These dividend payments, however, aren’t exactly on par with those being made by names better-established as income investments.
-
Apple serves as a reminder that all investors should clearly define their investing goals and then identify which tickers are best suited to meet those goals in the long run.
-
There’s certainly no denying this technology ticker has been a powerhouse performer for the past couple of decades. And yes, Apple (NASDAQ: AAPL) is technically a dividend-paying stock.
These two details alone, however, don’t inherently make this name a well-suited choice for income-seeking investors.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
The numbers
Don’t misread the message. Again, Apple pays its shareholders an ever-growing dividend. It’s just not a particularly big one. The stock’s current forward-looking yield stands at a mere 0.3%. That’s not much… only about $1.08 per share. To put those numbers in perspective, to collect just $100 worth of income from a stake in this popular company in a year, you’d need 93 shares of its stock. If you were buying that number at today’s price, it would cost you a little over $32,000.
Moreover, even if the company continues raising its dividend at its recent pace, in 10 years that initial $32,000 investment would still only yield annual dividends of just under $160. That translates into opportunity cost with making such a sizable commitment to AAPL as an income investment.
Not suited for this purpose
This doesn’t mean Apple is a bad stock pick, to be clear. It’s just not a great pick for income investors needing their assets to generate recurring, spendable cash at a reasonable rate of return.
Rather, AAPL remains primarily a growth stock, albeit a good one, boosted by even more generous stock buybacks. The company spent $25.8 billion on repurchases during the quarter ending in June, for perspective, while only $4 billion was spent funding its dividend payments. This dynamic isn’t apt to change much under new CEO John Ternus’ leadership, either.
So, if you’re looking for a solid all-around income investment, look elsewhere, and start your search with stocks that have a higher yield. While a dividend yield at any particular time is far from a stock’s whole story, it’s certainly an important part of every income investment’s profile.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $355,124!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,296,254!*
Now, it’s worth noting Stock Advisor’s total average return is 901% — a market-crushing outperformance compared to 210% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 24, 2026.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
