Apple Earnings Per Share – Why is Apple Dividend So Low?

PUBLISHED Aug 8, 2022, 3:50:03 PM        SHARE

imgRashada Parveen

Apple earnings per share (EPS) are still lucrative for the investors as these earnings have grown 18.4% over the last 12 months. The third quarter earnings-per-share were reported at $1.20, a 7% decline year over year. But the investors are still confident about the future EPS growth in the next quarter.

In this article, we will discuss why Apple's earnings have high growth prospects and what the market share of apple is. Moreover, we will talk about the Apple cash cow and about why is Apple dividend so low. So, let's dive into this exciting discussion!

Read also about Tesla (TSLA) Alphabet (GOOG) and Netflix (NFLX) stocks

Apple Inc.

Apple Inc. is a tech giant multinational corporation centered in California. With over 154 000 employees, Tim Cook, CEO of Apple, has led this technological corporation since 2011.

Steve Jobs initiated this cutting-edge venture in 1976 and soon spread worldwide, taking up 18% of the total market share. Apple provides services by developing and distributing consumer gadgets, software, and other on-line services right from Cupertino in California.

The leading products of Apple with ever-increasing sales include iPhones, Mac, iPads, and wearables like the Apple Watch, Home, and other Accessories. This giant tech company also earns a major chunk of its revenues from other valuable supportive services to their apple clients.

Apple always pursued its goals of innovations and protecting consumer privacy in all its applications and software. Succeeding in capturing the market share, Apple has always looked for opportunities to bring the best services to its customers worldwide.

With the US's largest market share of 51%, it is also leading the global smartphones market in Europe after the Samsung or the Android phone. Although the apple and android market share has declined in the last two quarterly reports due to the withdrawals from Russia, the overall expansion is in an upward trend.

Read also Visa (V) and Bank of America (BAC) stocks

Third Quarter Report, Ending June 25, 2022

Apple reported its third-quarter earnings on July 28, and it successfully beat the market by reporting an EPS of $1.20 against the expectations of the diluted shares. The EPS witnessed a decline of 7.69% year over year.

Q3 Earnings Metrics Values YoY Change (%)
Revenue 82.96 B 1.87 % Up
Operating Expenses 12.81 B 15.10 % Up
Net Income 19.44 B 10.59% Down
Diluted EPS 1.2 7.69% Down
Net Profit Margin 23.44% 12.21 % Down
EBITDA 25.88 B 4.00 % Down

Apple's revenue increased to $83 billion in the third quarter earnings. The third quarter revenue growth was attributed to the increase in the sale of iPhones and the delivery of other Apple services.

The current apple price per share is $167.45, down 8% from year to date. The Apple price has increased since the announcement of the quarterly report on July 28.

Moreover, the company has a market capitalization of $2.69 trillion with a Price-to-earning ratio of 27.67. After witnessing the lowest price of $129.04 in June, when the market was at its lowest lows, the stock price gained momentum after trading at its lows.

Stock Metrics Values
Market Cap 2.67 T
52- week Range $129.04 - $182.94
P/E Ratio 27.47
Dividend Yield 0.55%

Compared to its competitors, apple has performed well and showed solid results.

Why is Apple Dividend so Low?

Apple's dividend has always been modest, with a steady increase in the payments of dividends. Many people wonder why the dividend of apple per share is so low. The answer to this question lies in the price of apple shares. Apple stock price is increasing, and it is trading at the highest price.

The company has announced four stock splits until now to make the shares affordable to small investors. The highest price of shares means the yields on these high-valued stocks would be lower. Conversely, a higher dividend yield reflects a lower price of the shares.

NextEra Energy Stock (NEE) Dividend And Forecast and NRG Energy Stock

Sale of Apple Bonds and Apple Earnings Per Share

Last week, Apple (APPL) sold corporate bonds worth $55 billions, intending to get enough cash for shares buybacks. The corporation already has enough cash. Suppose the company announces selling the bonds to raise capital. In that case, it can help the shareholders as they can now enjoy the increase in the equity value after the bonds have been issued.

In a similar effort to raise capital, the company also announced the sale of bonds in 2021. At that time, it raised $6.5 billion to support its buybacks. Another reason might be the lowest price of the bonds.

So, the investors can expect the earnings per share to grow in the next quarter. Moreover, showing their support for a clean and green ecosystem, Apple has issued three Green Bonds since 2016.

Learn more about the recessuion-proof utility stocks like Dominion energy Stock (D), Sempra Energy Stock (SRE) and Edison International Stock (EIX)

The Bottom Line

With all the downward EPS trend in the current fiscal year, when the supply chain has been disrupted by the Russia-Ukraine war and the highest-ever inflation rate in forty years, we can expect the EPS to fall for all the listed companies.

But the silver lining is the revenue growth due to increased sales. It points towards the recovery in the stock prices and earnings in the upcoming quarters. Moreover, the current positive outlook on the stock exchange reflects the investors' positive sentiments about the companies' future growth.

Also Read: Wil Meta Stock Go Up?, Amazon Stock Price Prediction, Microsoft (MSFT) and Is BBY A Buy or Sell? Is Best Buy still the Best Buy For Investors? Furthermore, the recent bond issuance and share buybacks announced by Apple are likely to increase the investors' and shareholders' earnings in the future. The cash cow of Apple, the iPhone, has shown resilient growth and continues to fetch a greater market share.

So, Apple's Earnings per Share are more likely to grow over the upcoming quarters or years. So, investors should buy this stock to enjoy the high yields by investing in these growth stocks.

AAPL, Big Buy

Apple Inc
Return: 15.23%

AAPL, Big Buy

Return: 15.23%

Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads

Stock Market Analysis & Commentary

GOOG Earnings Hit Slightly By the Current Economic Slowdown

Goog Earnings have been affected by the current economic activity, yet the revenues are still higher.

Tesla stock prediction as Sell-off of Bitcoin

What will be the price of TSLA stock in the coming months and years? Will it recover its position after this recent dip?

Nvidia Stock Price & Forecast | NASDAQ: NVDA

NVIDIA Corporation (NASDAQ: NVDA), the company invented GPU in 1999 which help the growth of the PC gaming market.

Political Agreements Boost Green Stocks and Semiconductors

Sen. Joe Manchin (D-WV) Has Decided to be Team Player

The Case for Buying the Dip

The case for buying the dip is based on the availability of undervalued assets in a market that has suffered indiscriminate selling.

Berkshire Hathaway Forecast ahead of Quarter 2 2022 Earnings Report

Berkshire Hathaway announced its Quarter 1 2022 earnings on 30th April. During the first quarter, earnings declined due to slowing economic growth and stock market pullback. Berkshire Hathaway quarter 2 2022 earnings are expected to be published on 5th August. Let's look at the current market trends and Berkshire Hathaway's performance to determine a possible outcome of the quarter 2 2022 earnings.

What Happened to Netflix Stock? Stranger Things About the Netflix Stock Drop in 2022

What Happened to Netflix Stock? A Horrible Series or just a scary episode of the Netflix Stock Drop in 2022? Let's explore everything!

Mrmd, bros

Headed for substantial growth

Bank of America Stock Price Today - BAC Making Huge Revenues in a Bear Market

Are you hunting the high-value stocks to make high returns even when the pessimism prevails? Bank of America Stock Price Today is just at the lowest level.

Why it’s Time to Start Buying TESLA Long

Is it possible to sell Tesla, the most shorted stock globally, as a potential long buy? On 21 July 2022, Tesla’s stock surged by 10%, attributed to its strong earnings in its Q2 2022 results. The surge was an unpleasant surprise for short traders, who made an estimated mark-to-market loss of over $1 billion.

Estimating Future Stock Returns, March 2022 Update

Well, finally the bear market… at 3/31/2022 the S&P 500 was priced to return a trice less than zero in nominal terms.

Feeling Risky? Marijuana Stocks May Jump From Legislation

Senate Democrats Working on Bill to Decriminalize Marijuana


Is Visa stock a buy? Let's discuss why it is a strong buy and why it is not due to the pro-cyclical nature of the stock!

Is Rivian a Buy Right Now?

Take a Look at the Hot New EV Release

Should You Buy Tesla Stock?

Should you buy Tesla Stock right now or after the much-awaited Tesla Stock Split expected in August?


Pfizer, the world top class company, develops and manufactures drugs or medicine and vaccines, having approximately 3.7 billion shares on NASDAQ.

Why Should You Know About Amazon Stock?

Amazon issued its IPO at $18 per share trading under the NASDAQ with symbol AMZN. Subsidiary companies Zoox Kuiper System Amazon Lab126 Amazon Web Service.


ETSY is a well-run company and a reasonable investment for a long-term investor. The company's unique business model is increasingly taking it to the top of the game. ETSY has become the top e-commerce go-to for consumers in many categories, especially hand-made and vintage collections.

Why Adobe is a Long Buy and Analysis of Q2 Fiscal 2022

When considering to purchase, it is wise for an investor to analyze a stock's past performance. Adobe stock has been growing steadily and consistently in the past. As expected with any stock, it has fluctuated from time to time, depending on the market factors, but the performance has been good overall.

Resources for Publishers
Resources for New Investors
Boosted with BossCoin
Financial Literacy Leaders
Tom Hamilton
Wise Intelligent
Mark Robertson
Kevin Matthews II
Akeiva Ellis
Brendan Dale
Kenneth Chavis IV
Sharita Humphrey