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.