AAPL vs TXN: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
TXN yields 2.11% more than AAPL. In dollar terms, AAPL pays $1.03/share vs TXN's $5.50/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%.
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: The payout ratio of 13% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 7.7x.
TXN: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AAPL vs TXN 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 $226.09 per share, $10,000 buys about 44.2 shares of Texas Instruments Inc (TXN). Each share pays $5.50 per year in dividends, so the position starts out generating roughly $243 per year — about $20 a month.
TXN is the larger income stream from day one: $203 per year more on the same $10,000 invested.
What could $10,000 of AAPL or TXN 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.
Texas Instruments Inc (TXN) has raised its dividend about 14.6% a year over the past five years. If that pace held, the $249 per year that $10,000 generates today at the current 2.49% yield would reach $972 per year by 2036 — a 9.7% yield on the original cost.
On those trailing rates, TXN pays more in 2036: $972 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 TXN's higher yield?
It doesn't, on the trailing numbers. Texas Instruments Inc (TXN) yields more today (2.49% vs 0.38%) and has also grown its dividend at least as fast (14.6% vs 11.8% a year over five years). Unless AAPL accelerates its raises or TXN stumbles, AAPL never closes the income gap — TXN wins on both current income and growth.
Can AAPL and TXN 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).
Texas Instruments Inc (TXN) earns $5.45 per share against $5.50 paid out in dividends — 1.0x coverage (a 1% 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 TXN if earnings weaken.
Which fits an early-retirement income portfolio better, AAPL or TXN?
For income you need right now, Texas Instruments Inc (TXN) leads: $100,000 invested today pays about $207 a month at the current 2.49% yield, versus $31 a month from Apple Inc. (AAPL) at 0.38%.
TXN also leads on dividend growth (14.6% vs 11.8% a year over five years), so the trailing numbers favor it on both fronts.
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 $1,243/yr in TXN 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.
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