Charles Sizemore on Apple: This dividend stock will never run out of cash

“Apple (AAPL) has been getting a lot of media attention lately and justifiably so. Driven by iPhone 6 sales that were even stronger than expected, its last quarterly release was the best quarterly release by any public company in history,” Charles Sizemore, Principal of Sizemore Capital Management, blogs. “But while plenty of others have written about Apple as a growth powerhouse, I want to focus on Apple as a dividend stock. Apple is a dividend-raising powerhouse and a dividend stock that will never run out of cash—or at least not in the expected lifespan of anyone reading this.”

“Now, I should be clear here: This kind of growth is not something we should expect to repeat. There was a lot of pent-up demand for the larger-screen iPhones, and a lot of would-be sales from future quarters was likely pulled forward,” Sizemore writes. “I should also point out that not all of Apple’s news was good. iPad sales continue to disappoint and were actually down 22%. And I’m not expecting Apple Pay or the Apple watch to amount to a lot.”

“Guess what? None of this matters to me when looking at Apple as a dividend stock,” Sizemore writes. “What would it take for Apple’s dividend to come under threat? I can tell you that I honestly have no idea. I suppose we could all stop using smartphones tomorrow. Or a nuclear war could take us all back to the Stone Age. Or perhaps the aliens that took Elvis away could come back for the rest of us… or a Walking Dead zombie apocalypse could overrun the company’s headquarters. In order to find a scenario whereby Apple’s dividend came under threat, you have to dabble in the absurd.”

Read more in the full article here.

MacDailyNews Take: Now, imagine what a guy who actually understands the magnitude of Apple Pay and Apple Watch would think.


  1. The iPhone 6 cannibalized some of the iPad sales. And Apple profits much more from the iPhone so it is a better situation for the company. And Apple Pay is going to be an enormous business.

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