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.
Dividend Appreciator for Seeking Alpha:
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.
This is definitely NOT the time to buy Apple. There’s another market correction coming soon – and it’s not upwards.
I agree that the market has not hit bottom yet. In the upcoming months, when corporations post massive losses, and unexpected companies go bankrupt (e.g., “OMG- I never imagined a world in which Macy’s would go out of business!”) that’s when the market will truly head down across the board, and that’s when you can get bargains . . . back in 2008, when Apple was on the rise with the iPhone, it’s stock price went down, not because of its performance, rather, because the entire market imploded. We’re not there yet.
Apple is doomed:) in short.
Who in the world thinks the stock market is going to sing with joy when the worst employment #’s and big GDP drop (I’ve heard/read 20-30%) are noted in future reports? I JUST heard on the news, there was the biggest one day increase in V infection confirms and there’s no way to conclude the V-status will help the above numbers.
During such times, human emotions/thinking are prone to ups/downs and drive the market “whimsically”. It’s worth noting the biggest one day increases, nearly top 20 historically, happened during the larges market downturns….GD/30’s, ’87, ’08, ’20. I’ll guess there are a number of big moves still ahead, especially with the V still “at-large” and roving.
To say “buy” now is absurd, both spoken to a “trader” and to a “buy and holder”. Where were these people saying “buy” when AAPL was at/near $212? Buying the next dip, at/near the job report (s), would make far more sense per my basic understanding…but it ALL depends on where we are in the Cycle of the V, as it’s the main factor that determines if stasis (the bottom) is near. Until this beast is somewhat caged, who knows what “bottom” means? Then there’s the relationship to the World-wide econ health….
Side note from my financial advisor, that I’m now wondering about their “advice”….
“We heard from the JP Morgan’s Global CIO Dr. David Kelly on a conference call that the ‘fall will now be a stall, followed by a surge in the markets’.
To clarify the “surge”, this is meant to be long-range, which could be 2021 or even 2022, recovering over time. The market will have lots of ups and downs in the meantime. We want to reinvest you back into the stock market….”
Per this well-versed (and paid) person, it maybe a time to buy, so what do I know…except that I doubt Kelly’s perspective.
1-5 years from now these current prices will look like a steal,of a deal. I’m willing to bet big on that and am. Trying to time the absolute bottom is Impossible. Scale in at every drop and your cost average will be something to boast about in the future.
Uncle Warren is right, “when others are greedy be fearful, when others are fearful be greedy”. Never in our lifetime have people been so fearful WHILE at the same time the underlying fundamentals of our economy, and more importantly, our favorite fruit company, are so strong. Buy and hold and retire early!
My great hope, and I’m not holding my breath on this, is that AAPL will shift their strategy from repurchasing shares to a massive dividend increase. Like double the yield. They could do that and still save billions over what they’ve been spending on buybacks. Given the “greedy corporation” optics of buybacks at this time, I hope they do. Offer such a great reward to buy-and-holders that investors would be crazy not to load up.
That’s the hope of this thankful early AAPL retiree. 🤞🏾
You’re a month late. On Feb. 24, Stable genyus said:
“The Coronavirus is very much under control in the USA. We are in contact with everyone and all relevant countries. CDC & World Health have been working hard and very smart. Stock Market starting to look very good to me!”
@realDonaldTrump
You know this little flu is going to blow over in April, or by Easter, or when the sun comes out, or something. You gullible fools.