Apple: The best of both worlds awaits savvy investors

“Apple (AAPL) appears well positioned to provide dividend investors with an opportunity for both capital appreciation and income production,” David Alton Clark writes for Seeking Alpha.

“Firstly, according to the rumor mill, Apple is about to embark on one of the most intense product launch cycles in the company’s history in the second half of this year. This should augur well for organic growth,” Clark writes. “Further, if the new products are successful, this will spur free cash flow, increase capital gains and buttress dividend growth. Finally, the company is making intelligent use of capital presently and is attractively priced. Consequently, I submit Apple is a great high dividend yield buying opportunity for savvy investors.”

“Apple has reached a major inflection point. If Apple is able to execute flawlessly over the next couple of quarters and the new products are received well, I see the stock revisiting the prior all-time high of $700,” Clark writes. “Moreover, with the Fed keeping interest rates at all-time lows for the foreseeable future, investors are being driven to dividend-paying stocks in a search for yield. On top of that, I submit Apple is vastly undervalued providing an excellent safe haven play in the face of a potential macro market selloff. Moreover, the stock presents an exceptional total return play based on the upcoming product launch cycle.”

Read more in the full article here.

4 Comments

  1. I don’t know why Seeking Alpha gets so much airspace here – it’s one of the last places to go for authoritative comment. There is no curating/editing at all of what you read on site, so unless you have knowledge about the stature of the writer, it’s not possible to rely on anything.
    Perhaps their superficiality can be best explained in their own words (from their website):
    “Depth: With over 7,000 contributing authors and 20,000 commenters, insight and discussion are informed and sophisticated.”
    …I would come to quite the opposite conclusion – “With over 7,000 contributing authors, take everything you read with a grain of salt.”

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