The COVID-19 pandemic has presented an opportunity to buy quality stocks like Apple. Apple has been increasing dividends for seven straight years. Like pretty much any company today, Apple will have challenges going forward, but analysts expect the company’s dividend will be raised for the eighth straight year in late April.
Apple has long been a fantastically profitable company and has been defying the law of large numbers. I remember back when people discussed which company would be the first to top $1 trillion in market cap. It seems kind of strange that even after the recent correction, Apple is still worth $1.08 trillion.
Like all companies, countries and people all around the world, Apple is sure to have its share of challenges going forward as a result of the spreading coronavirus. Still, the company has a dominant position around the globe and the simple fact is that you will now get it for 24% less than you did just over a month ago. This is a good time to add this profitable dividend grower to your dividend growth portfolio.
Investors in this stock have been handily rewarded over the last five years – with the stock moving from $125 to the current level of $248. That is a doubling over five years from a company that was already then one of the largest in the world. Talk about defying the law of large numbers! On an average annual basis this translates into a 14.7% return before dividends. With a little more than a 1% dividend yield over the period, we’re talking of approximately 16% total annual returns.
MacDailyNews Note: Ever since 2013, Apple has announced a dividend increase in late April or early May and it will very likely do so again this year. Those looking to buy dividend stocks today are smart to look at Apple. Apple has not yet announced the date for their earning report, but it’s consistently been on a Tuesday historically, so it’s likely to happen on Tuesday, April 28th.