Apple bonds are yielding more than 5%. Apple stock has a 0.5% dividend yield

Apple’s 10-year bonds currently yield about 5.20%. In comparison, the implied dividend yield on Apple’s stock at current prices is 0.54%.

Ciara Linnane and Tomi Kilgore for MarketWatch:
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Select Magnificent Seven 10-year bonds currently yield anywhere from about 5.20% for Apple Inc. to 5.75% for Meta Platforms… Meta doesn’t pay a dividend.
The remaining five are Amazon.com Inc., Alphabet Inc., Nvidia Corp., Microsoft Corp., and Tesla Inc. Tesla has no outstanding bonds after convertibles issued in the past were converted into stock.
Of that group, only Microsoft and Nvidia pay dividends, but the implied yield on Microsoft’s stock is 0.90% and on Nvidia’s stock is just 0.04%.
The companies’ bonds have fallen in price as their yields have climbed after the Federal Reserve steadily raised its key federal-funds rate to a target range of 5.25%-5.5% in 11 moves started in March of 2022. That’s because of the inverse relationship between bond prices and yields and not because of any credit-quality issue.
For investors, it means the opportunity to add these high-yielding, high-quality names to portfolios at a discount.

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MacDailyNews Take: Apple has the most outstanding debt in the group, but it’s very manageable at just $109.28 billion (as of June 2023).
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