AAPL vs CSCO: Dividend Yield, Growth & Safety Comparison
Apple Inc. (AAPL) and Cisco Systems, Inc. (CSCO) are both in the Information Technology sector, making them natural rivals for dividend investors. CSCO offers a significantly higher 1.89% yield compared to AAPL's 0.38%, a gap of 1.51%. For dividend growth, AAPL leads with a 5-year CAGR of 11.8% versus CSCO's 10.1%. AAPL holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | AAPL | CSCO |
|---|
| Dividend Yield | 0.38% | 1.89% |
| Annual Dividend | $1.03 | $1.63 |
| 5-Year CAGR | 11.8% | 10.1% |
| Payout Ratio | 13% | 63% |
| Consecutive Years | 0 | 0 |
| Price | $257.24 | $77.17 |
Yield Comparison
Cisco Systems, Inc. (CSCO) currently yields 1.89%, which is modest for the broader market. That's 1.51% more than Apple Inc. (AAPL), which yields 0.38%. In dollar terms, CSCO pays $1.63/share annually versus AAPL's $1.03/share.
Dividend Growth
Over the past five years, AAPL has grown its dividend at a 11.8% CAGR compared to CSCO's 10.1%. 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%. CSCO: Dividend growth is accelerating — the 3-year CAGR of 18.0% exceeds the 5-year rate of 10.1% and the 10-year rate of 8.5%.
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. CSCO's dividend safety is rated "Moderate." The payout ratio of 63% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x. AAPL's payout ratio of 13% is more conservative than CSCO's 63%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in CSCO generates approximately $189/year in dividend income, compared to $38/year from AAPL — a difference of $151/year. At $100,000, that gap widens to $1510/year.
Verdict
- Best for income: CSCO
- Best for growth: AAPL
- Best for safety: AAPL
Frequently Asked Questions
Which has a higher dividend yield, AAPL or CSCO?
Cisco Systems, Inc. (CSCO) has a higher dividend yield of 1.89% compared to Apple Inc. (AAPL) at 0.38%.
Is AAPL or CSCO a better dividend growth stock?
Apple Inc. has the stronger dividend growth with a 5-year CAGR of 11.8%, compared to Cisco Systems, Inc.'s 10.1%.
Which is safer for dividend income, AAPL or CSCO?
Apple Inc.'s dividend safety is rated "Safe" while Cisco Systems, Inc. is rated "Moderate." 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 63% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x.
How much income does $10,000 in AAPL vs CSCO generate?
A $10,000 investment in AAPL generates approximately $38/year in dividends, while the same amount in CSCO generates about $189/year.
Which has a lower payout ratio, AAPL or CSCO?
Apple Inc. has a lower payout ratio of 13% compared to Cisco Systems, Inc.'s 63%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AAPL vs CSCO: which is better for retirement income?
It depends on your priorities. CSCO for current income, AAPL for dividend growth, AAPL for safety. Many retirement investors hold both for diversification.
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