Buying Apple Inc. (AAPL) Stock for the Dividends? Don’t.

You can be bullish on AAPL stock because of its growth prospects, but income investors have far better options

Pacific Crest analyst Andy Hargreaves recently recommended that investors hold on to their Apple Inc. (NASDAQ:AAPL) shares. But it’s not because of new iPhone sales, but rather, the impending Trump tax reform. That will enable Apple to repatriate foreign cash to be used for increased dividends to owners of AAPL stock.

“We see potential for further upside to our unit and gross profit dollar estimates in the coming iPhone cycle, but believe growth beyond that will slow substantially,” Hargreaves wrote in a note to clients. “Consequently, we believe tax reform and a subsequent increase to the dividend may be necessary to drive significant upside in AAPL.”

Seriously, if that’s why you’re hanging on to your Apple stock, do yourself a favor and sell now. There are better dividend stocks to own in industries with much less volatility and change.

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