AAPL vs QCOM: Dividend Yield, Growth & Safety Comparison
Apple Inc. (AAPL) and Qualcomm Inc/De (QCOM) are both in the Information Technology sector, making them natural rivals for dividend investors. QCOM offers a significantly higher 2.51% yield compared to AAPL's 0.38%, a gap of 2.14%. For dividend growth, AAPL leads with a 5-year CAGR of 11.8% versus QCOM's 7.0%. AAPL holds the edge in dividend safety with a "Safe" rating. QCOM is a Dividend Contender with 23 years of consecutive increases.
Key Metrics Comparison
| Metric | AAPL | QCOM |
|---|
| Dividend Yield | 0.38% | 2.51% |
| Annual Dividend | $1.03 | $3.52 |
| 5-Year CAGR | 11.8% | 7.0% |
| Payout Ratio | 13% | 71% |
| Consecutive Years | 0 | 23 |
| Price | $257.24 | $140.78 |
Yield Comparison
Qualcomm Inc/De (QCOM) currently yields 2.51%, which is solid for the broader market. That's 2.14% more than Apple Inc. (AAPL), which yields 0.38%. In dollar terms, QCOM pays $3.52/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 QCOM's 7.0%. 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%. QCOM: Dividend growth is slowing — the 3-year CAGR of 5.7% trails the 5-year rate of 7.0% and the 10-year rate of 6.1%.
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. QCOM's dividend safety is rated "Moderate." The payout ratio of 71% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. AAPL's payout ratio of 13% is more conservative than QCOM's 71%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in QCOM generates approximately $251/year in dividend income, compared to $38/year from AAPL — a difference of $213/year. At $100,000, that gap widens to $2130/year.
Verdict
- Best for income: QCOM
- Best for growth: AAPL
- Best for safety: AAPL
Frequently Asked Questions
Which has a higher dividend yield, AAPL or QCOM?
Qualcomm Inc/De (QCOM) has a higher dividend yield of 2.51% compared to Apple Inc. (AAPL) at 0.38%.
Is AAPL or QCOM a better dividend growth stock?
Apple Inc. has the stronger dividend growth with a 5-year CAGR of 11.8%, compared to Qualcomm Inc/De's 7.0%.
Which is safer for dividend income, AAPL or QCOM?
Apple Inc.'s dividend safety is rated "Safe" while Qualcomm Inc/De 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 71% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
How much income does $10,000 in AAPL vs QCOM generate?
A $10,000 investment in AAPL generates approximately $38/year in dividends, while the same amount in QCOM generates about $251/year.
Is AAPL or QCOM a Dividend Aristocrat?
Qualcomm Inc/De is a Dividend Contender with 23 consecutive years of increases. Apple Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, AAPL or QCOM?
Apple Inc. has a lower payout ratio of 13% compared to Qualcomm Inc/De's 71%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AAPL vs QCOM: which is better for retirement income?
It depends on your priorities. QCOM for current income, AAPL for dividend growth, AAPL for safety. Many retirement investors hold both for diversification.
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