Apple fans got some welcome news tucked into the company’s blockbuster earnings report: the tech giant is raising its dividend.
The iPhone maker announced its Board of Directors declared a cash dividend of $0.26 per share, payable on February 12, 2026, to shareholders of record as of February 9. That’s up from the $0.25 per share Apple (AAPL) paid in the year-ago quarter.
It’s not a massive increase, but for a Dow Jones Industrial Average component sitting on $145 billion in cash and marketable securities, it signals confidence in the business despite some challenging headwinds ahead.
“During the quarter, we returned nearly $32 billion to shareholders,” CFO Kevan Parekh shared during the earnings call. “This included $3.9 billion in dividends and equivalents and $25 billion through open market repurchases of 93 million Apple shares.”
Valued at a market cap of $3.8 trillion, Apple accounts for nearly 6% of the S&P 500 index. Read on to discover if Apple is a dividend stock ripe for your portfolio.
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Apple delivers record-breaking quarter
The dividend increase comes as Apple posted what CEO Tim Cook called “a quarter for the record books.” In fiscal Q1 (ended in December):
- Revenue hit $143.8 billion, crushing Wall Street’s expectations of $138.48 billion.
- Net income reached $42.1 billion, translating to $2.84 per share—well above analyst estimates of $2.67.
- The real star of the show was iPhone, which generated$85.3 billion in revenue, up 23% year over year.
- That’s a dramatic turnaround from last year’s holiday quarter, when iPhone sales actually declined slightly.
In an interview with CNBC, Cook emphasized:
Apple set all-time revenue records across every geographic segment, with particularly impressive results in Greater China, where sales surged 38% to $25.53 billion.
Mac misses the mark
While iPhone dominated, other product categories delivered mixed results.
- Mac revenue came in at $8.4 billion, missing Wall Street‘s expectations and falling 7% year over year. Apple faced a tough comparison against last year’s M4 MacBook Pro launch, though the company noted the Mac installed base still reached an all-time high.
- iPad performed better, with revenue of $8.6 billion, up 6% and beating estimates. Cook highlighted that half of iPad buyers during the quarter were first-time customers—a promising sign for future growth.
- The Wearables, Home and Accessories category, which includes AirPods and Apple Watch, generated $11.5 billion but fell short of expectations. Apple experienced constraints on AirPods Pro 3 during the quarter.
- Services reached a record of $30 billion, up 14% year over year, driven by strong performance in advertising, cloud services, music, and payment services.
Supply constraints loom ahead
Despite stellar results, Apple warned investors of significant supply challenges that could affect the current quarter.
The company guided revenue growth of 13% to 16% for the March quarter, but Cook acknowledged the business is wrestling with supply chain headwinds amid high demand.
“We exited the December quarter with very lean channel inventory due to that staggering level of demand,” Cook explained. “At this point, it’s difficult to predict when supply and demand will balance.”
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The constraints stem from limited capacity for the advanced 3-nanometer chip manufacturing used in Apple’s latest processors.
Making matters worse, memory prices are climbing significantly across the industry due to AI-related shortages.
Beyond the current quarter, Cook acknowledged the company continues to see memory pricing increase significantly, but said Apple is exploring a range of options to address the issue.
AI partnership with Google raises eyebrows
Apple also made waves by announcing a collaboration with Google to develop next-generation Apple foundation models using Google’s Gemini AI technology.
“We basically determined that Google’s AI technology would provide the most capable foundation for Apple foundation models,” Cook said, adding the partnership will help power a more personalized Siri coming later this year.
The move is notable given Apple’s historically cautious approach to AI spending compared with rivals such as Meta and Microsoft, which have committed hundreds of billions to AI infrastructure.
Apple’s capital expenditures actually declined to $2.37 billion from $2.94 billion a year ago, though research and development expenses jumped to $10.89 billion from $8.27 billion.
Apple’s growing dividend payout
Data from Fiscal.ai shows that Apple has raised its annual dividend from $0.38 per share in 2012 to $1.04 per share in 2026.
More Dividend Stocks:
- Cathie Wood owns a $239 million stake in this dividend stock
- 147-year-old oil giant just raised dividend 4% in 2026
- Nancy Pelosi sells $1M of struggling dividend stock
According to Tikr.com, between fiscal 2026 and 2030, Apple is forecast to increase:
- Revenue from $464.70 billion to $594.6 billion.
- Free cash flow from $138.5 billion to $193 billion.
- Annual dividend from $1.07 per share to $1.33 per share.
Apple’s dividend increase and strong buyback activity demonstrate management’s confidence despite near-term supply challenges.
The company now has over2.5 billion active devices globally, which should drive growth in its Services business.
However, investors should monitor how Apple navigates the memory pricing environment and supply constraints in the coming quarters.
The company’s ability to maintain its impressive 48.2% gross margin while absorbing higher component costs will be critical.
For now, though, Apple shareholders have plenty to celebrate—including a little extra dividend income hitting their accounts next month.
