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.