Apple for retirement portfolios

Apple has a ton of cash and CEO Tim Cook has explicitly said he wants to raise the dividend each year.

Regardless of what you think about Apple prod­ucts, Apple the com­pa­ny is worth a look at for your port­fo­lio. Especially your retire­ment port­fo­lio.

Apple has a lot of mon­ey in the bank (and the cur­rent tax plan favors their return­ing it to the US) and has been rais­ing it’s div­i­dend year­ly for a few years.

CEO Tim Cook has also said that he wants to raise the div­i­dend every year.

While the stock for the moment is sit­ting at/near its all-time high, get­ting in at this price locks in your div­i­dend yield (cur­rent­ly 1.443%), while let­ting you take advan­tage of future div­i­dend increas­es (which increase your yield-on-cost, or what I call in my book, ‘actu­al yield’).

Turn on rein­vest­ing to juice your div­i­dend income even fur­ther.

Even for non-retire­ment accounts, Apple can be a good com­pa­ny for peo­ple who want to learn more about invest­ing because their results are so wide­ly dis­cussed. To get invest­ed in Apple, even with just a few dol­lars, head over to Stockpile (and get $5 towards get­ting start­ed when you open a new account). On Stockpile, you can buy ‘frac­tion­al shares’ and par­tic­i­pate in Apple’s growth and div­i­dend even if you can’t afford a whole share (cur­rent­ly around $175).

The moti­va­tion for this post was this arti­cle from May 2016, Apple for Retirement Portfolios. While the num­bers have changed because Apple’s stock price has gone up quite a bit since then, the strat­e­gy remains the same.

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