Apple pays dividends, but they are small compared to the stock price
Yes, Apple Inc. pays dividends to shareholders who own its stock. As of early 2024, Apple pays a quarterly dividend of $0.24 per share, which amounts to roughly $0.96 per share annually. That means if you own 100 shares, you receive about $96 per year in four separate payments. The dividend has grown over time — Apple began paying dividends in 2012 after decades of paying none — but it remains modest relative to the stock price, which trades in the hundreds of dollars per share.
The dividend yield (the annual payout divided by the stock price) typically falls between 0.4% and 0.6%, depending on where the stock price sits on any given day. This is lower than many other large companies and much lower than bonds or savings accounts. Investors who buy Apple stock primarily for income should understand that dividends are not the main reason to own it; most returns come from the stock price rising or falling.
Key Takeaways
- Apple's quarterly dividend is $0.24 per share, paid four times per year, totaling roughly $0.96 annually per share.
- The dividend yield is typically between 0.4% and 0.6%, meaning dividends make up a small portion of total returns for Apple shareholders.
- Apple did not pay any dividend until 2012, and the payout has grown slowly since then through occasional increases.
- Dividend payments are made directly to your brokerage account if you own shares through a broker, or to you directly if you own shares in certificate form.
When and how Apple pays dividends
Apple pays dividends quarterly, meaning four times per year. The company typically announces the dividend amount and payment date in advance through press releases and its investor relations website. Payment dates vary slightly year to year but generally fall in February, May, August, and November. The actual cash lands in your account a few days after the payment date, depending on your broker's processing time.
To receive a dividend, you must own the stock before the ex-dividend date, which is the cutoff date set by the stock exchange. If you buy the stock on or after the ex-dividend date, you do not receive that quarter's payment; the seller does. Your broker will show you the ex-dividend date when you look up the stock, and most financial websites list it as well.
How the dividend has changed over time
Apple's dividend history is short compared to many Fortune 500 companies. The company paid no dividend at all from its founding in 1976 until August 2012, when it announced its first quarterly payment of $0.38 per share. At that time, the stock price was around $600, making the yield roughly 0.25%.
Since then, Apple has increased the dividend multiple times. The per-share amount has roughly doubled, reaching $0.24 per quarter by 2024. However, the stock price has also risen significantly, so the yield has not increased proportionally. Apple's board of directors votes on dividend increases periodically, usually announcing them once per year, though increases are not may provide.
Dividend reinvestment and tax treatment
Many brokers offer a dividend reinvestment plan, often called DRIP, which automatically uses your dividend payment to buy additional shares of Apple stock instead of sending you cash. This can be useful if you want to grow your position without paying trading fees, though you still owe income tax on the dividend whether you reinvest it or take it as cash.
Dividends from Apple are taxed as ordinary income if you have held the stock for less than 60 days around the ex-dividend date. If you have held it longer, they are taxed as may have access to dividends, which typically have a lower tax rate. Your broker sends you a 1099 form each January showing the total dividends you received during the previous year, which you report on your tax return. The tax rate depends on your overall income and filing status.
Why Apple's dividend is small relative to other stocks
Apple's low dividend yield reflects the company's strategy of returning cash to shareholders primarily through stock buybacks rather than dividends. A stock buyback is when the company purchases its own shares from the open market, reducing the total number of shares outstanding. This increases the earnings per share without changing total earnings, which can push the stock price up.
In recent years, Apple has spent far more on buybacks than on dividends. For example, in fiscal year 2023, Apple spent roughly $110 billion on buybacks but only about $14 billion on dividends. This approach appeals to shareholders who prefer capital gains (stock price appreciation) over income, and it offers tax advantages because buybacks are not taxed until you sell the stock, whereas dividends are taxed immediately.
Comparing Apple's dividend to other tech stocks
Most large technology companies pay low or no dividends. Microsoft pays a dividend of roughly $2.72 per share annually with a yield around 0.7%, slightly higher than Apple. Google (Alphabet) pays no dividend at all. Amazon pays no dividend. Meta (Facebook) pays no dividend. Tesla pays no dividend.
If you are looking for higher dividend income, you would typically look outside the technology sector to utilities, real estate investment trusts (REITs), or consumer staples companies, many of which pay yields of 2% to 5% or higher. However, those companies often have slower stock price growth than tech companies. The trade-off between dividend income and capital appreciation is a core investment decision.
What happens to dividends if you own Apple through a retirement account
If you own Apple stock inside a 401(k), traditional IRA, or Roth IRA, the dividend is still paid, but the tax treatment differs. In a traditional IRA or 401(k), dividends are not taxed when received; instead, you pay income tax when you withdraw money from the account in retirement. In a Roth IRA, dividends are not taxed at all, either when received or when withdrawn, as long as you follow the account rules.
Many people hold Apple stock in these retirement accounts specifically because the tax-deferred or tax-free growth compounds over decades. The dividend reinvestment happens automatically within the account, and you do not receive a 1099 form for dividends earned inside a retirement account.
Frequently Asked Questions
When does Apple pay its next dividend?
Apple announces dividend payment dates through press releases and its investor relations website. You can find the schedule by searching "Apple dividend dates" on your broker's website or Apple's investor relations page. Payments typically occur in February, May, August, and November, but the exact date changes each year.
Do I have to hold Apple stock for a certain amount of time to get the dividend?
You must own the stock before the ex-dividend date to receive that quarter's payment. You do not need to hold it after that date. However, to receive the lower tax rate on may have access to dividends, you must hold the stock for at least 60 days within a 121-day window centered on the ex-dividend date.
What if I sell my Apple stock right after the dividend is paid?
You keep the dividend payment. Once the dividend is paid to your account, it is yours regardless of whether you still own the stock. However, if you sell before the ex-dividend date, you do not receive that quarter's payment because you are no longer the owner on record.
Is Apple's dividend may provide to keep growing?
No. Apple's board of directors votes on dividend increases periodically, but there is no may provide they will continue. The company could freeze the dividend, reduce it, or eliminate it entirely if business conditions change. However, Apple has increased the dividend every year since 2012, which suggests the company views it as a sustainable part of its capital return strategy.
Can I receive Apple dividends if I own fractional shares?
Yes. If your broker allows fractional share ownership and you own 0.5 shares, you receive half the dividend payment. Most modern brokers support fractional dividends, but confirm with your broker if you are unsure.