Buy Apple Stock for Dividends?

Well, here’s an article I never thought I would write, but is Apple a dividend stock now?

Apple’s stock price has been drifting down as of late while investors worry that the company doesn’t have any new amazing products up its sleeve. This worry is particularly curious considering the products the company does have are still market leaders in most categories. And, that those very same products, are almost religiously upgraded by a large number of users every time a new one comes out, especially the company’s most important product, the iPhone.

This could be worrying to shareholders if the company was overvalued and priced to perfection, but with a P/E of 10.85, it’s not out of line with other successful technology companies by any stretch of the imagination.

Of course, a lot of the concern is simply that the company has grown as much as it can and that there are no more world’s to conquer. This is always and odd fear to me, but I suppose to some it matters. In other words, maybe Apple isn’t a growth stock anymore. And, to a certain kind of investor, the only stocks worth investing in are growth stocks.

apple stock logo

Apple Dividend

Here is where things get interesting. Recently, thanks to these worries, coupled with the rough start to the year for the stock market, Apple stock is currently trading close to $100 per share.

The company pays a $2.08 per year dividend, so at $100.00 per share, that works out to a dividend yield of around 2 percent.

In other words, Apple will pay you 2 percent per year (better than any savings account) to hold onto its stock while it figures out the next big thing.

I supposed the only reason to not buy Apple stock here, for the longer term at least, is that you think that not only does Apple not have any big ideas right now, but that it won’t have any again in the future either. I’m not sure that sounds like a good bet.

As always, do your own research and make your own investment decisions. Remember that buying individual securities is something you should do only AFTER you have fully funded your retirement plan, your plan for your kid’s education, and your emergency reserve savings fund.

This is not an investment recommendation, nor an offer to buy or sell securities. This article if for general information only and is not financial or investing advice. Consult your financial and tax professionals for advice specific to your individual situation.

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