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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