Is 4% the New $1000 for Apple Inc. (AAPL)?

As an income stock, Apple is very attractive.  At 2.34%, the current yield is higher than the Standard & Poor’s 500 average of around 2%.  With a low dividend payout ratio of just 11.91%, Apple can easily afford to raise its dividend yield without irresponsibly impairing its cash flow. As a comparison, Intel has a 4.30% dividend yield from a payout ratio of 45%.  The yield for Microsoft is 3.29% with a dividend payout ratio of 46.66%. Apple could double its dividend and still have a payout ratio less than half that of either Microsoft or Intel.  Nokia just ended its cash dividend after more than twenty years paying it.  Google is old school and still does not pay a cash dividend.

For long term income investors, Apple has a great deal of appeal, even if it never comes close to $1000.00 a share.

The article Is 4% the New $1000 for Apple? originally appeared on Fool.com and is written by Jonathan Yates.

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