Apple (AAPL) Dividend Won't Make You Rich, But is the 'Cherry on Top'

Apple's (NASDAQ: AAPL) next dividend is expected to be announced with the iPhone giant's fourth-quarter results on Thursday, October 28, 2021. The quarterly dividend is expected to be maintained at $0.22 per share, or $0.88 per share annually, which yields 0.6% based on the current stock price.

Apple usually raises its dividend in May, as it has done for the last nine years. The latest dividend increase was announced on May 7, 2021, with the company delivering a 7.3% dividend hike - from $0.205 to the current level of $0.22. This year's hike was above 2020's 6.5% dividend hike and 2019's 5.5% dividend hike but below 2018's 15.9% dividend hike. Apple's dividend history can be found here.

Apple's dividend yield has been drifting lower over the past several years as its stock has skyrocketed. In the middle part of the last decade, Apple’s yield was hovering just below and just above 2%, versus the current yield that is now well below 1%. This trend lower in the dividend yield has occurred as Apple's trading multiple has increased sharply as the company's iPhone demand has remained strong, the company has added a major services component to its business, and results have proved consistent.

Apple is currently one of the top-rated dividend stocks, with an analyst rating score of 6.4 (out of 10).

Recently, Wall Street analysts have noted that the new iPhone 13 is seeing longer wait times amid high demand. Wedbush analyst Dan Ives recently said iPhone 13 pre-orders were 20% ahead of Apple's launch last year and China was leading the way. Further, other analysts noted that the average selling price (ASP) will be higher given the strong demand for the iPhone 13 Pro model.

Overall, while Apple's dividend won't make you rich, it is a nice cherry on top for owning the top-performing tech stock.

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