Pros Of Having Apple Stock
Despite a global pandemic, Apple stock is up more than 80% in the last 12 months. And in its most recent quarterly report, the company announced record-setting revenue for the June quarter, typically the slowest of the year. Its enormous cash hoard has reached legendary levels. At the end of June 2020 it had less than $194 billion in cash and investments - money it routinely returns to shareholders through stock buybacks and dividends.
Since 2012, the company’s quarterly dividend has more than doubled, from a split-adjusted 38 cents per share to 82 cents per share today. It also increased its dividend by 16% in fiscal year 2018, 5% in 2019 and 6% in 2020.
Apple has spent literally hundreds of billions on share buybacks, which helped send the stock price to more than $400 per share by late July. In its most recent earnings report, Apple announced a 4-for-1 stock split, its first split since 2014, that will "make the stock more accessible to a broader base of investors." It's the fifth stock split in company history; for every Apple share an investor in early 1987 owned, they will own 192 Apple shares after the 2020 split goes through on Aug. 31.
Services segment growth. Arguably the biggest point of excitement for Apple shareholders nowadays is Apple's services segment, which posted revenue of $13.16 billion, up almost 15% from a year ago.
Services, which includes many of Apple's hit software offerings like iTunes and the App Store, is a higher-margin part of the business, meaning more profits drop down from the top to the bottom line. The newest member of the services segment is Apple TV.
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