AAPL vs AVGO: Dividend Yield, Growth & Safety Comparison
Apple Inc. (AAPL) and Broadcom Inc. (AVGO) are both in the Information Technology sector, making them natural rivals for dividend investors. AVGO edges ahead on yield at 0.71% versus AAPL's 0.38%. For dividend growth, AVGO leads with a 5-year CAGR of 12.9% versus AAPL's 11.8%. Both stocks carry a "Safe" dividend safety rating. AVGO is a Dividend Challenger with 6 years of consecutive increases.
Key Metrics Comparison
| Metric | AAPL | AVGO |
|---|
| Dividend Yield | 0.38% | 0.71% |
| Annual Dividend | $1.03 | $2.42 |
| 5-Year CAGR | 11.8% | 12.9% |
| Payout Ratio | 13% | 49% |
| Consecutive Years | 0 | 6 |
| Price | $257.24 | $327.48 |
Yield Comparison
Broadcom Inc. (AVGO) currently yields 0.71%, which is very low for the broader market. That's 0.33% more than Apple Inc. (AAPL), which yields 0.38%. In dollar terms, AVGO pays $2.42/share annually versus AAPL's $1.03/share.
Dividend Growth
Over the past five years, AVGO has grown its dividend at a 12.9% CAGR compared to AAPL's 11.8%. AAPL: Dividend growth is accelerating — the 3-year CAGR of 19.6% exceeds the 5-year rate of 11.8% and the 10-year rate of 10.3%. AVGO: Dividend growth has been steady, with a 3-year CAGR of 12.7% and a 5-year CAGR of 12.9% (10-year: 28.6%).
Dividend Safety
AAPL's dividend safety is rated "Safe." The payout ratio of 13% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 7.7x. AVGO's dividend safety is rated "Safe." The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.0x. AAPL's payout ratio of 13% is more conservative than AVGO's 49%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in AVGO generates approximately $71/year in dividend income, compared to $38/year from AAPL — a difference of $33/year. At $100,000, that gap widens to $330/year.
Verdict
- Best for income: AVGO
- Best for growth: AVGO
- Best for safety: AAPL
Frequently Asked Questions
Which has a higher dividend yield, AAPL or AVGO?
Broadcom Inc. (AVGO) has a higher dividend yield of 0.71% compared to Apple Inc. (AAPL) at 0.38%.
Is AAPL or AVGO a better dividend growth stock?
Broadcom Inc. has the stronger dividend growth with a 5-year CAGR of 12.9%, compared to Apple Inc.'s 11.8%.
Which is safer for dividend income, AAPL or AVGO?
Apple Inc.'s dividend safety is rated "Safe" while Broadcom Inc. is rated "Safe." The payout ratio of 13% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 7.7x. The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.0x.
How much income does $10,000 in AAPL vs AVGO generate?
A $10,000 investment in AAPL generates approximately $38/year in dividends, while the same amount in AVGO generates about $71/year.
Is AAPL or AVGO a Dividend Aristocrat?
Broadcom Inc. is a Dividend Challenger with 6 consecutive years of increases. Apple Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, AAPL or AVGO?
Apple Inc. has a lower payout ratio of 13% compared to Broadcom Inc.'s 49%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AAPL vs AVGO: which is better for retirement income?
It depends on your priorities. AVGO for current income, AVGO for dividend growth, AAPL for safety. Many retirement investors hold both for diversification.
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