AA
Apple Inc. (AAPL)
The fcf payout ratio for Apple Inc. (AAPL) is 15.74%.
Current FCF Payout Ratio
AAPL
15.74%
Assessment
Low
Highly sustainable - room for dividend growth
What is FCF Payout Ratio?
FCF Payout Ratio measures what percentage of free cash flow is paid out as dividends. Unlike earnings-based payout, it shows actual cash sustainability of dividends.
Payout Ratio Comparison
FCF Payout Ratio
15.7%
Earnings Payout Ratio
13.9%
Dividend Yield
0.41%
FCF Yield
2.58%
Formula: FCF Payout Ratio = Dividends Paid / Free Cash Flow × 100
Why FCF Payout matters more than Earnings Payout:
- FCF represents actual cash available (not accounting earnings)
- A company can't sustainably pay more dividends than it generates in cash
- FCF Payout > 100% means the company is borrowing or using reserves to pay dividends
- Earnings can be manipulated, FCF is harder to fake
Dividend sustainability: If FCF Payout is consistently below 60-70%, dividends are likely sustainable and have room to grow.