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5 Reasons You Should and Should Not Buy Apple for the Dividends, According to Experts

Fiona Tapp

Fri, Apr 18, 2025, 8:01 AM 4 min read

Apple is a household name and one of the most valuable companies in the world. Known for its innovative products and exceptional brand loyalty, it has become a staple in many investors’ portfolios.

However, when it comes to buying Apple for the dividends, opinions among experts vary.

Here are five reasons why you should — or shouldn’t — consider Apple’s dividend stock strategy for your personal portfolio.

Steady dividend growth: Apple has consistently increased its dividend payouts over the years, providing reliable income to shareholders. Nancy Tengler, chief executive officer and chief investment officer at Laffer Tengler Investments, told CNBC: “You’re getting a 9% dividend growth over the last five years and earnings growth is expected to accelerate. So, I think this is when you can even buy here and certainly with the recent pullback, and then you plan to hold it for quite some time.”
Strong cash flow and profits: With a massive cash reserve, Apple is in a position to continue paying dividends. Its cash flow and profit-generating capabilities make it less likely that the company will struggle to maintain its dividend payments, even during economic downturns. According to Forbes, despite low dividend yields, “The company’s conservative payout ratio of 15% provides substantial room for future dividend increases, potentially doubling the payout over the next five years while maintaining financial flexibility for investments and acquisitions.”
Appealing for long-term investors: Apple’s dividend payouts are not the highest in the market, but they offer a steady source of income that can appreciate over time. For long-term investors, this stability combined with Apple’s capital appreciation potential offers a balanced risk/reward profile. According to Nasdaq, “Investors can reasonably expect annual increases for the foreseeable future, considering management has raised it for 13 consecutive years.”
Dividend reinvestment potential: If you’re looking to reinvest your dividends, Apple’s steady growth and solid dividend policy can compound over time, potentially offering solid returns through reinvestment.
Trusted brand and market position: Apple’s dominance in the tech industry provides a sense of stability that dividend investors seek. As an established leader with consistent earnings, Apple offers reassurance to dividend-seeking investors who want to avoid risky, volatile stocks.