A Stock With a Low Dividend Yield
If you’re looking for a stock with a low dividend yield, you may want to consider AAPL. This company is headquartered in Cupertino, California and employs approximately 200,000 people. Apple’s dividend yield has averaged at 1.0% in the last five years. But it is currently 0.69%, which is slightly below the market’s 1.00%. And the dividend is expected to go ex in two months.
AAPL's dividend yield is 0.69%
Apple is a well-known and popular company that is known for its technological products, such as the iPad and iPhone. The company also designs wearables, designs computers, and offers digital content and services. It is considered a growth company, as it reinvests the company’s earnings in new projects.
Apple is one of the strongest tech companies, and it continues to lead the industry in many ways. For instance, it has introduced several innovative products, such as the iPhone and MacBook Air. However, the company’s dividend is often overlooked. If you are thinking of investing in the stock, you should consider how the company pays its dividends.
In addition to its popular product line, the company has paid out a quarterly dividend for over two decades. During the past nine years, the company has increased its dividend payout. This is a great way for beginning investors to start building wealth. In the last few years, Apple’s dividend yield has risen from 0.25% to 0.69%.
However, if you look at historical dividend yield data, you will find that the company’s average annual yield is much lower. A company’s dividend is calculated by dividing its annual dividend by its stock price. To determine if a company’s dividend is worthy of your money, you should check out the dividend’s payout ratio. Generally, a company that is in good financial shape will pay out a larger percentage of its net income in dividends.
As an investor, you may be interested to know that Apple also offers an App Store Small Business Program, which reduces the commission that you will pay for in-app purchases. Another good sign is that the company’s quarterly dividend has grown from $0.22 per share in the first quarter of 2022 to $0.23 per share in the second quarter.
Apple's dividend yield has averaged at 1.0% in the last 5 years
If you’re looking for a stock to consider if you’re on the hunt for a long term hold, you’ve probably already got a list of candidates. Apple is the big dog among tech stocks, with an impressive 7.2% market cap, but it’s not the only one with a presence in the stock market. The company’s home base is California, but it also has significant operations in Asia Pacific, China and the rest of the world, thanks in part to its burgeoning smartphone business.
The big question is how much does Apple pay in the form of dividends? As of December 21, 2022, the answer is a modest 0.70%. Although Apple has a history of paying out lavishly in the past, the company has been more discreet with its cash. Its annualized payout has been in the low-single digits since 1989, but that’s about par for the course for the industry.
AAPL's dividend yield has since been flipped upside down
Apple (AAPL) is one of the biggest dividend paying companies in the world. With over $403 billion worth of share repurchases and no plans to cut its dividends, the company is showing no signs of slowing down.
For investors looking to buy Apple, there is a solid balance sheet with lots of free cash flow. The company has plenty of room to boost its dividends over time. Its current yield is 0.69%. This is less than the broad market’s 1.8%, but more than one percentage point higher than the Technology sector average of 1.66%. However, dividends are often overlooked as stocks are often valued more for their ability to increase in price. As such, many tech stocks don’t pay dividends at all. Instead, they reinvest their earnings in new projects. This is how Apple keeps its balance sheet strong.
When Apple took a major hiatus in 1995, it faced significant headwinds. But with the global work from home mandate and the rise of 5G, the iPhone and Mac business have benefited immensely. In the future, the high margin Services division is expected to contribute more to Apple’s revenues, while the wearable segment is expected to remain a driving force.
Apple’s current stock price as of March 1st, 2022 is around $163 per share. Since 2012, the company has repurchased over $200 billion in shares. A stock buyback is a shareholder-friendly practice. Moreover, Apple’s low payout ratio indicates that the company is able to increase its dividend without cutting it.
Despite the fact that the company’s stock price is increasing at a faster rate than its dividend, Apple’s dividend yield is not too low. Its annualized payout of $0.91 per share represents a yield of 0.67%.
AAPL's trailing 12 month sales are required to be 1.5 times greater than the mean of the market's trailing 12 month sales
Apple (AAPL) has reached a record high of over $1 trillion in stock value. The company produces a variety of mobile communication devices, including iPhones, iPads, Macs, Apple Watch, and peripherals. It also sells software, accessories, and related services.
Investors will want to pay attention to Apple’s financial reports. The company generated $56 billion in net income in the last four quarters. Although the earnings per share numbers aren’t out yet, analysts expect the firm to generate $1.27 per share in fiscal 2018.
The stock market is currently trading at a P/S ratio of 14.3 (which is a very reasonable price to sales ratio). Acme’s ratio is 2.2. A high P/S ratio can mean that the stock is undervalued, while a low one indicates that it is overvalued. The average price for a gallon of regular unleaded gasoline was $2.21 on February 11, up 7 cents from a month ago. That puts the price per gallon at an average of 33% higher than a year ago.
Consumers are delaying upgrades, which means that the smartphone industry has entered a period of declining sales. Global smartphone sales decreased 5.6% in the fourth quarter of 2017.
Apple’s future fortunes will depend on how well the company’s latest iPhones perform. If the iPhone XS and XS Max perform well, investors will be positive. However, if the new iPhones don’t do as well as expected, it’s possible that the company will need to find a different product category to boost its revenue. Earlier this month, the company reported slow consumer demand. But, it was still able to sell premium iPhones during the quarter.
With the market now at over $1 trillion, it’s time to look at how Apple is positioned. One way to do this is by looking at its PE-to-Growth ratio. AAPL has a P/G ratio of 0.58.