AAPL vs AVGO: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
AVGO yields 0.33% more than AAPL. In dollar terms, AAPL pays $1.03/share vs AVGO's $2.42/share annually.
Dividend Growth
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: The payout ratio of 13% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 7.7x.
AVGO: The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.0x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AAPL vs AVGO today?
At $257.24 per share, $10,000 buys about 38.9 shares of Apple Inc. (AAPL). Each share pays $1.03 per year in dividends, so the position starts out generating roughly $40 per year — about $3 a month.
At $327.48 per share, $10,000 buys about 30.5 shares of Broadcom Inc. (AVGO). Each share pays $2.42 per year in dividends, so the position starts out generating roughly $74 per year — about $6 a month.
AVGO is the larger income stream from day one: $34 per year more on the same $10,000 invested.
What could $10,000 of AAPL or AVGO income look like in 10 years?
Apple Inc. (AAPL) has raised its dividend about 11.8% a year over the past five years. If that pace held, the $38 per year that $10,000 generates today at the current 0.38% yield would reach $115 per year by 2036 — a 1.1% yield on the original cost.
Broadcom Inc. (AVGO) has raised its dividend about 12.9% a year over the past five years. If that pace held, the $71 per year that $10,000 generates today at the current 0.71% yield would reach $239 per year by 2036 — a 2.4% yield on the original cost.
On those trailing rates, AVGO pays more in 2036: $239 versus $115 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would AAPL's dividend growth overtake AVGO's higher yield?
It doesn't, on the trailing numbers. Broadcom Inc. (AVGO) yields more today (0.71% vs 0.38%) and has also grown its dividend at least as fast (12.9% vs 11.8% a year over five years). Unless AAPL accelerates its raises or AVGO stumbles, AAPL never closes the income gap — AVGO wins on both current income and growth.
Can AAPL and AVGO afford their dividends?
Apple Inc. (AAPL) earns $7.91 per share against $1.03 paid out in dividends — 7.7x coverage (a 13% payout ratio).
Broadcom Inc. (AVGO) earns $4.78 per share against $2.42 paid out in dividends — 2.0x coverage (a 49% payout ratio).
AAPL's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for AVGO if earnings weaken.
Which fits an early-retirement income portfolio better, AAPL or AVGO?
For income you need right now, Broadcom Inc. (AVGO) leads: $100,000 invested today pays about $59 a month at the current 0.71% yield, versus $31 a month from Apple Inc. (AAPL) at 0.38%.
AVGO also leads on dividend growth (12.9% vs 11.8% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: AVGO has raised its dividend 6 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $119/yr in AAPL vs $256/yr in AVGO by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
Track AAPL and AVGO in your portfolio
See your real income from both — forward projections, yield on cost, and dividend safety signals. Sync your brokerage free for 30 days, or track holdings manually on the free plan.
Frequently Asked Questions
Related Resources
Individual Stock Analysis
Dividend Tools
Track Your Dividends
More Comparisons
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
By using this tool you agree to our Terms of Service and Privacy Policy.