Technology

Apple Just Paid Investors: Here's How Much They Got

Trey Thoelcke

Published: February 13, 2025 8:45 am

Apple Inc. (NASDAQ: AAPL) is rewarding its shareholders once again with a quarterly dividend of $0.25, payable on Thursday, Feb. 13. That is in line with the prior payout.

Apple was at one time Warren Buffett’s favorite tech stock. The ongoing dividend payment underscores management’s commitment to delivering consistent value to investors.

Why Investors Like Dividends

Investors favor dividend stocks for two main reasons. The first is that they offer enticing total return potential. Total return is a comprehensive measure of investment performance that includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. It is one of the most effective ways to boost the prospects of overall investing success.

Dividend stocks can also provide investors with a steady, reliable stream of passive income. Passive income is money that is earned with little to no ongoing effort, usually from assets that generate cash flow. This income can come from a variety of sources, including stock dividends. Generating passive income is a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

A Buffett Pick?

Buffett first bought Apple shares in 2016, and the stake grew to be a significant portion of the Berkshire Hathaway Inc. (NYSE: BRK-B) portfolio. However, Buffett sold much of that stake last year. The holding was last seen at around 296 million shares, which is less than 5% of Apple. So, Berkshire Hathaway is no longer a beneficial owner. Buffett insists that Apple is still a great business, but he parted with shares to take advantage of low tax rates and build a cash hoard.

Apple has paid a quarterly dividend since 2013. The payout was last reduced in 2020, when it dropped from $0.82 per share to $0.205. It has increased about 22% since then. The current dividend yield is about 0.4%, which is less than the industry and sector averages. For Berkshire Hathaway, that works out to about a $74 million quarterly payout.

Apple, the Company

The company designs, manufactures, and markets smartphones, personal computers, and other consumer electronics, accessories, and services worldwide. Its offerings include:

• iPhone, a line of smartphones
• Mac, a line of personal computers
• iPad, a line of multi-purpose tablets
• AirPods
• Apple TV
• Apple Watch
• Beats products
• HomePod

It also provides AppleCare support and cloud services, advertising services, and various subscription-based services, including Apple Music and Apple Pay. It also operates various platforms, including the App Store.

The company serves consumers, and small and midsize businesses, as well as the education, enterprise, and government markets. It sells its products through its retail and online stores, and direct sales force, as well as third-party cellular network carriers, wholesalers, retailers, and resellers.

Company headquarters are in Cupertino, California, which is in Silicon Valley. Apple was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne as a personal computer maker. The company went public in December of 1980. Now, it competes with or is similar to, among others:

• Alphabet Inc. (NASDAQ: GOOGL)
• Dell Technologies Inc. (NYSE: DELL)
• IBM Corp. (NYSE: IBM)
• Microsoft Corp. (NASDAQ: MSFT)
• Samsung

Apple has partnered with Alibaba to bring AI to iPhones in China. Also, the Apple Vision Pro headset has launched in China and other Asian countries, and the company opened a new store in Shanghai. The company continues to roll out updates for its recently released Apple Intelligence. Product launches in the past year include the iPhone 16, Apple Watch Series 10, and iOS 18. The company also announced last year that it had cut its greenhouse gas emissions in half.

Apple, the Stock

The share price is over 191% higher than five years ago, outperforming the Nasdaq in that time. Year to date, though, the stock is down more than 5%, underperforming the broader markets. It hit an all-time high of $260.10 per share late last year. The $252.23 consensus price target is less than that but still indicates that the analysts anticipate almost 10% upside in the next 52 weeks. Their consensus recommendation is to buy shares. Citigroup, Morgan Stanley, and Needham maintained their Buy-equivalent ratings recently.

Apple is one of the most widely held stocks by hedge funds. Institutional investors hold more than 62% of the shares. Besides Berkshire Hathaway, note that BlackRock, State Street, and Vanguard also have notable stakes. More than 135 million shares, or less than 1% of the float, are held short. Also note that a director recently parted with around 1,500 shares.

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