AAPL vs TXN: Dividend Yield, Growth & Safety Comparison
Apple Inc. (AAPL) and Texas Instruments Inc (TXN) are both in the Information Technology sector, making them natural rivals for dividend investors. TXN offers a significantly higher 2.49% yield compared to AAPL's 0.38%, a gap of 2.11%. For dividend growth, TXN leads with a 5-year CAGR of 14.6% versus AAPL's 11.8%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | AAPL | TXN |
|---|
| Dividend Yield | 0.38% | 2.49% |
| Annual Dividend | $1.03 | $5.50 |
| 5-Year CAGR | 11.8% | 14.6% |
| Payout Ratio | 13% | 1% |
| Consecutive Years | 0 | 0 |
| Price | $257.24 | $226.09 |
Yield Comparison
Texas Instruments Inc (TXN) currently yields 2.49%, which is solid for the broader market. That's 2.11% more than Apple Inc. (AAPL), which yields 0.38%. In dollar terms, TXN pays $5.50/share annually versus AAPL's $1.03/share.
Dividend Growth
Over the past five years, TXN has grown its dividend at a 14.6% 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%. TXN: Dividend growth is accelerating — the 3-year CAGR of 20.6% exceeds the 5-year rate of 14.6% and the 10-year rate of 17.8%.
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. TXN's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x. TXN's payout ratio of 1% is more conservative than AAPL's 13%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in TXN generates approximately $249/year in dividend income, compared to $38/year from AAPL — a difference of $211/year. At $100,000, that gap widens to $2110/year.
Verdict
- Best for income: TXN
- Best for growth: TXN
- Best for safety: TXN
Frequently Asked Questions
Which has a higher dividend yield, AAPL or TXN?
Texas Instruments Inc (TXN) has a higher dividend yield of 2.49% compared to Apple Inc. (AAPL) at 0.38%.
Is AAPL or TXN a better dividend growth stock?
Texas Instruments Inc has the stronger dividend growth with a 5-year CAGR of 14.6%, compared to Apple Inc.'s 11.8%.
Which is safer for dividend income, AAPL or TXN?
Apple Inc.'s dividend safety is rated "Safe" while Texas Instruments 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 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x.
How much income does $10,000 in AAPL vs TXN generate?
A $10,000 investment in AAPL generates approximately $38/year in dividends, while the same amount in TXN generates about $249/year.
Which has a lower payout ratio, AAPL or TXN?
Texas Instruments Inc has a lower payout ratio of 1% compared to Apple Inc.'s 13%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AAPL vs TXN: which is better for retirement income?
It depends on your priorities. TXN for current income, TXN for dividend growth, TXN for safety. Many retirement investors hold both for diversification.
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