Apple and Amazon stock are “coiled springs about to explode to the upside,” a dividend investor and Seeking Alpha contributor believes.
Amazon and Apple have been left out of 2021’s market rally underperforming the S&P index and their other tech conglomerate peers,” Steven Fiorillo writes for Seeking Alpha. “An opportunity is being presented to investors as both Amazon and Apple are in the midst of record-breaking years from a financial standpoint.”
Who would have thought that out of the big tech conglomerates, Amazon and Apple would be the worst investments for the first half of 2021? AMZN has appreciated 7.35%, while AAPL is up 5.55% since the beginning of the year… With the story of growth spilling over into 2021 and the latest short squeeze, sticking it to the hedge fund craze, I believe AMZN and AAPL’s accomplishments are being overlooked… With so much focus on GameStop, AMC Entertainment, and SPACs, it’s not surprising that investors overlook what is occurring with AMZN and AAPL.
Going into Q2 earnings at the end of July, I believe picking up shares of AMZN or AAPL is an excellent play as we turn the quarter to the second half of 2021 and approach the holiday season…
For the first six months of 2021, AAPL has delivered an increase of $44.29 billion (35.7%) in total revenue, $18.9 billion (56.44%) in net income, and $1.2 (62.83%) in EPS from its first six months of 2020. Putting that in perspective, AAPL has already delivered 61.33% of the total revenue, 91.25% of the total net income, and 93.96% of EPS in the first six months of operations compared to what was generated throughout the entire 2020 fiscal year…
What’s Mr. Market going to do when AAPL delivers Q3 earnings on 7/29/21 (estimated), and they overwhelmingly exceed the amount of net income and EPS generated in 2020 in just nine months? If people want growth, look at AAPL’s numbers. They’re not producing these increases off of $1 billion revenue and $100 million net income. It’s shocking but fine with me as I add shares before AAPL’s next leg up.
MacDailyNews Take: Fiorillo also asks, “How much more enticing of an investment would AAPL be with a 3% dividend?”
Fiorillo thinks Apple should place a greater focus on the dividend as it would benefit existing shareholders more than focusing on buybacks. He writes that buybacks are not bad by any means, but he thinks that it’s time for AAPL to allocate more capital to its dividend to reward and entice new investors.