Apple Stock News
Apple has been struggling which is why their shares have declined 14% in the past two months. iPhone Sales, which make up 63% of the company’s total revenue have been stagnant. This may seem worrisome for investors, but it actually gives a great opportunity to buy Apple for a relatively cheap price.
The stock is currently trading at $104, which is 23% lower than its 52 week high. With the stock trading this low, it has become a very interesting deal for dividend investors. The dividend yield is currently standing at 2%. This may not seem high, especially when compared to its rival Microsoft, whose dividend yield is 2.6%.
One major difference between Apple and Microsoft is that Apple’s dividend yield is far more likely to grow. Apple’s dividend has already grown from 1.4% to 2% in the past 6 months. Apple’s payout ratio is currently at a very conservative 21.4%. In comparison, Microsoft has a payout ratio of 84.5%. This gives Apple far more wiggle room to increase their dividend in the future.
Apple isn’t just a good investment for dividend investors. It’s price to earnings ratio is at an incredibly conservative 11.3. Again when comparing it to Microsoft’s PE ratio of 37.3, Apple shows how its stock is being sold at a price far lower than its value. This makes them a great long-term investment.