AAPL vs KO: Dividend Comparison
Dividend data as of
Apple Inc. (AAPL) from Information Technology and Coca Cola Co (KO) from Consumer Staples offer different dividend profiles for income-focused portfolios. KO offers a significantly higher 2.58% yield compared to AAPL's 0.38%, a gap of 2.20%. For dividend growth, AAPL leads with a 5-year CAGR of 11.8% versus KO's 5.0%. AAPL holds the edge in dividend safety with a "Safe" rating. KO is a Dividend Contender with 23 years of consecutive increases.
Verdict
Yield Analysis
KO yields 2.20% more than AAPL. In dollar terms, AAPL pays $1.03/share vs KO's $2.04/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%.
KO: Dividend growth has been steady, with a 3-year CAGR of 5.3% and a 5-year CAGR of 5.0% (10-year: 4.3%).
Dividend Safety
AAPL: The payout ratio of 13% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 7.7x.
KO: The payout ratio of 67% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AAPL vs KO 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 $78.74 per share, $10,000 buys about 127.0 shares of Coca Cola Co (KO). Each share pays $2.04 per year in dividends, so the position starts out generating roughly $259 per year — about $22 a month.
KO is the larger income stream from day one: $219 per year more on the same $10,000 invested.
What could $10,000 of AAPL or KO 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.
Coca Cola Co (KO) has raised its dividend about 5.0% a year over the past five years. If that pace held, the $258 per year that $10,000 generates today at the current 2.58% yield would reach $419 per year by 2036 — a 4.2% yield on the original cost.
On those trailing rates, KO pays more in 2036: $419 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 KO's higher yield?
Not within a realistic holding period. Apple Inc. (AAPL) is growing its dividend faster (11.8% vs 5.0% a year), but the starting-yield gap — 2.58% for KO vs 0.38% for AAPL — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, KO's head start is decisive.
Can AAPL and KO 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).
Coca Cola Co (KO) earns $3.04 per share against $2.04 paid out in dividends — 1.5x coverage (a 67% 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 KO if earnings weaken.
Which fits an early-retirement income portfolio better, AAPL or KO?
For income you need right now, Coca Cola Co (KO) leads: $100,000 invested today pays about $215 a month at the current 2.58% yield, versus $31 a month from Apple Inc. (AAPL) at 0.38%.
With a decade or more before the income is needed, AAPL's faster dividend growth (11.8% vs 5.0% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: KO has raised its dividend 23 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 $541/yr in KO 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 KO 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.