Apple may stop being a top stock pick for dividend-focused investors. Bloomberg reports that the company has lost the advantage it once enjoyed over the S&P 500 in terms of dividends.
Why Apple shed its lead over the S&P 500
Last year after Apple (NASDAQ:AAPL) reinstated quarterly dividends, its stock yielded up to .67 percentage points more than the dividend yield of the full S&P 500 Index. However, the company has been slower to grow its dividend compared to the index. Apple increased the payout 7.9% this year, compared to last year’s 15% growth. Currently Apple’s dividend yield is at 1.97% with a payout of $1.88 annually. That’s only a few basis points ahead of the 1.91% yield recorded by the S&P 500.