Hello Everybody,
This is a quick post to notify the readers of the news that recently Apple established a stock dividend for it’s shareholders. Many people might now want to jump in and invest in the company, but is it a good idea or not? Nobody can predict the future on how well the stock will perform and if the company will continue to grow on a global scale. In any case I will break down for you what you can expect to get as income if you decide to invest in Apple stock aside from any price gains. I will do the calculations for a 5K, 10K, 20K, and 50K amount of investable assets with a current price of $600 dollars a share. The dividend they are currently paying is 2.65 per share owned.
Investments:
5K-Nets you 8 shares x 2.65 = 22 dollars per Qtr= $88 Income annually.
10K-Nets you 17 Shares x 2.65= 45 Dollars per Qtr= $180 Income annually
20K -Nets you 33 Shares x 2.65=$88 per Qtr= $353 Income annually
50K – Nets you 83 Shares x 2.65= $ 220 per Qtr= 883 Income annually.
Now that you see the numbers would it make sense to invest in this company with its over inflated price per share and such a low dividend in relation to it’s stock price? Here are a few things to consider, 1. The price of the stock in a year has gone from 310 to 610 price per share. 2. The company is very popular and is growing everyday. 3. The earnings estimate of apple is in the double digits for the foreseeable future. 4. The dividend is only a paltry 1.75%.
In conclusion if it were me I would definitely invest in the company if I had some extra playing money, as it is only slated to grow more, the only downside I see is the high stock price inflated by the media and all the institutional investors and the lowly dividend yield. Apple has a very large amount of money just sitting around why not give it’s investors at least a 2.5% dividend yield. Could this company reach a thousand dollars in stock price one day maybe but if I were to buy it I would sell it at 800 and take my profits elsewhere.
