why is AAPL "dividend princes"

Apple (AAPL) is often referred to as a "dividend prince" due to several key characteristics that make it an attractive dividend-focused investment option: 1. **Consistent Dividend Growth**: Apple has a history of increasing its dividends over time. The company has raised its quarterly dividend for 13 consecutive years, which is a sign of stable and growing earnings that can support dividend payments. 2. **High Dividend Yield**: With a dividend yield of 0.52% as of April 16, 2025, Apple's dividend yield is competitive and attractive, especially in comparison to the relatively low inflation rate. |code|Ticker|Name|Date|Payout Ratio|Dividend Yield (TTM)|market_code| |---|---|---|---|---|---|---| |AAPL|AAPL.O|Apple|20240417|2.0581805623798295|0.5808065476190476|185| |AAPL|AAPL.O|Apple|20240418|2.0581805623798295|0.5841445162835249|185| |AAPL|AAPL.O|Apple|20240419|2.0581805623798295|0.5915054545454546|185| |AAPL|AAPL.O|Apple|20240420|2.0581805623798295||185| |AAPL|AAPL.O|Apple|20240421|2.0581805623798295||185| |AAPL|AAPL.O|Apple|20240422|2.0581805623798295|0.5885094066570188|185| |AAPL|AAPL.O|Apple|20240423|2.0581805623798295|0.5847717195925703|185| |AAPL|AAPL.O|Apple|20240424|2.0581805623798295|0.5774369897053603|185| |AAPL|AAPL.O|Apple|20240425|2.0581805623798295|0.5744799576196362|185| |AAPL|AAPL.O|Apple|20240426|2.0581805623798295|0.5764819846426461|185| 3. **Payout Ratio**: The payout ratio is a metric that indicates how much of the company's earnings are distributed to shareholders as dividends. A lower payout ratio suggests that a company retains more earnings for reinvestment and growth, which can be positive for long-term prospects. Apple's payout ratio of -15.88% indicates that the company is retaining earnings for growth. However, a negative payout ratio suggests that the company is not generating enough earnings to cover its dividend payments, which could be a concern. 4. **Dividend Stability**: Apple has a track record of stable dividend payments, which is important for investors who rely on dividend income. The company's consistent dividend history reduces the risk of dividend cuts or non-payment. 5. **Financial Health**: Apple's strong financial health, reflected in its cash reserves and free cash flow, supports its ability to sustain and grow its dividend payments. 6. **Dividend Policy**: The company's dividend policy is aligned with a commitment to returning value to shareholders, which has been demonstrated through consistent dividend increases and share buybacks. These factors combined make Apple a compelling dividend investment, earning it the nickname "dividend prince." However, it's important to note that the negative payout ratio indicates a need for the company to improve earnings growth to sustain its dividend payments.