Apple (AAPL) “recently put up excellent fiscal second-quarter results,” Valuentum writes for Seeking Alpha.
“The quarterly report wasn’t all the news, however,” Valuentum writes. The board announced that it has been very busy. First, it authorized another significant increase in its plan to return cash to shareholders. Apple’s share repurchase authorization has been raised to $90 billion from $60 billion previously, and the company approved an 8% increase to its quarterly dividend, to $3.29 per share ($13.16 per share annually, 2.5% annual yield). The company’s Valuentum Dividend Cushion score indicates that the firm’s dividend still has significant room for growth.”
“In our view, Apple may become one of the best dividend growth gems over the next few decades (a Dividend-Aristocrat-to-be),” Valuentum writes. “Our discounted cash flow model indicates that Apple’s shares are worth between $586-$844 each. This range will be adjusted following the company’s 7-for-1 stock split. This fair value range assumes that Apple will continue to innovate and hold its ground across its existing product portfolio, growing modestly along with the mobile market. The higher end of the fair value range is reserved for the value created by the execution of Apple’s share buyback program, coupled with the likelihood of the firm using its strong brand and product presence to roll out yet another ancillary product, such as wearable devices or other. ”
Much more in the full article here.
The statement is the key:
“This fair value range assumes that Apple will continue to innovate and hold its ground across its existing product portfolio, growing modestly along with the mobile market.”
Nearly every potential investor out there ‘assumes’ that Apple’s history with Microsoft will play out again and again. Even thought Apple keeps doing bigger and more profitable things, many people don’t believe in Apple’s ability to sustain it. A large number of people can’t stand to see a winner and want to see the winner brought down to their level so that they can feel good about themselves.
Hey 3l3c7ro, I hope you are doing well. While I still find that most of your posts express ideas in a way that is akin to mentally dragging fingernails across a black board you do make a good point here about “A large number of people can’t stand to see a winner and want to see the winner brought down to their level so that they can feel good about themselves.”
This reminds me of the tall poppy syndrome:
http://en.wikipedia.org/wiki/Tall_poppy_syndrome
Now your statement includes the verb “wants” and certainly there are elements that would like to see Apple fail and goodness knows that the media does it’s fair share of spreading the Fear Uncertainty and Doubt. Taking your statement a step further, making it all encompassing by say a uniform uninformed society as is present on a large island in the Pacific would result in the tall poppy syndrome and slightly modifying your statement would reflect that: “Our society can’t stand to see a winner and that winner WILL be brought down to our level but we’ll still never feel good about ourselves.”
There is a phenomenon that I am writing about as well, that I call the short poppy syndrome. It’s about the way that society, the one on that Pacific Island treats it’s migrants.
I am quite familiar with the tall poppy story. I heard it about 20 years ago when I was considering an instructor exchange program with an Australian University who’s motto was “Where tall poppies grow.”
Oftentimes, I make grating posts to try to get people to consider other possibilities. The future is populated with possibilities and the present is where the mundane resides while the past is full of relics.
Well said. You do take chances with your brand of provocation. I wonder if that carries over into the classroom as well. My own experience is that confrontational methods alienate more students than they inspire. On the other hand, if you can turn around just one young person’s life, that can be qualified as a success.
This is not a stately for student. I reserve this just for MDN and the odd person I meet.
Nice Photo!
Thank you, I had been shy
Really? What for? I thought you had red hair.
Just between you and me, that is a photo of my niece. She darkened her hair after it began turning white following the birth of her second child. Yes, such things do happen. She allowed me to use her image as my avatar for now. Please understand that complexion is a major issue for some of us, call it vanity and laugh if you will but it is kin to the male balding phobia and no question.
I would never laugh at an issue that is sensitive for someone. I also am loosing my hair but fortunately, I am OK with it. It is part of life and I accept it as long as I also attain the wisdom that often goes along with it.
@3l3c7ro
It was unthinking of me to bring up thinning hair – sorry – & I wish I could be as sanguine about my own issues as you seem to be.
I have no concern about my thinning hair or your reference to the similarity of the feelings men might have about it to help me identify with your feelings. It is your character I admire and have no thought about your complexion. I love brainy people.
strategy
@Road Warrior, thank you for bring this to my attention
I am puzzled by the 2nd sentence of the 2nd paragraph of the wiki article you linked to…it seems in error…it intends to contrast New Zealand & Australia, but doesn’t. I want to know if tall poppy is “nicer” to Kiwis than it is to Aussies or vice versa.
Yes, it does appear that good sense is not valued on wall street or by most financial anal…yst.
Even thought many previous articles pushed for Apple to stock split, now that they have, there are blogs out there that say Apple is doomed cause it stock split and that the split does not make any money for Apple.
Ramblings, thats all.
This has nothing to do with the article, but I for one, can’t wait for June 2. You can bet there will be folks out there that will know nothing about the split, and wake up thinking Apple’s stock crashed and their money is gone… wheeeeee!
586 to 844..?
Ok im a big apple fan and investor….
But please 586 to 844 and that is worthy of print?
I suspect some investors will also be considering that Apple is almost doubling it’s debt with the next bond sale to fund the dividend distribution instead of repatriating off-shore funds. I think this will dull some of the upward mobility of the stock in the near term on the other hand the 7 for 1 split may push the price up by making the stock appear affordable.