Apple, the most popular technology brand of all time, is the first trillion dollar company. We aren’t talking about the fruit here but the company might seem to be a sweet fruit to the Investors. Investment in Apple stocks today might make you think twice, or maybe thrice as well. But do not worry. We all are just as confused as you are. Let’s discuss whether the investment in Apple stocks today is worth it or not.
According to CNBC, if you had invested $1,000 on Apple stocks about 10 years ago, you would have made a little more than $9,000 excluding dividends and including price appreciation. It’s true that the stock market doesn’t hold a secure future. Just because the stock of a company performed well doesn’t mean it will perform well later.
However, we are talking about a decade of excellent performance by Apple’s stocks. On top of that the well known and respected investor, Warren Buffett, bought 75 Million of Apple’s stocks. Apple’s stock price had soared during May of 2018.
Like I say, [Apple CEO] Tim Cook can do simple math and he can probably do very complicated math too. So we very much approve of them repurchasing shares.Warren Buffett
Warren is not wrong. Even though the total sales of the new iPhone have slowed down, it’s no secret that there are more than 1 Billion iPhone users. Features like Apple Music, iMessage, FaceTime, awesomely designed devices, etc. make it hard for Apple users to quit Apple anytime soon as they are used to using these features.
Falling in the trap of an Apple ecosystem, the users have purchased a number of apps, music, etc. They are very unlikely to quit everything they have invested in Apple and go for other ecosystem. It’s like a wall that people cannot escape easily and people will go deeper into this ecosystem as the time passes by.
Let’s look at the dividend yield Apple has been providing to its investors. In May 2018, Apple said it would buy back $100 billion in shares and will raise its quarterly dividend 16%, from 63 cents a share to 73 cents a share as well.
It’s very unlikely that Apple will go bankrupt anytime soon. Instead, investors see this moment as the right time to invest in Apple Stocks. What are your thoughts? Comment them down below. Would you consider buying Apple Stocks today? Or would you describe it as it’s too late to invest in Apple now?