Apple - Complete Stock Dividend Analysis | Investing in Stocks | Summary and Q&A

TL;DR

This video provides a detailed analysis of Apple stock, including factors such as the dividend, earnings, sales growth, and product cycles. The analysis suggests a potential downside risk in the stock price and advises to keep an eye on the fundamentals before investing.

Key Insights

• 🥳 Apple's stock is considered expensive and trading at a relatively high price-to-earnings ratio.
• 🥺 The company has a history of beating earnings expectations, which could potentially lead to an increase in the stock price.
• 😘 Apple's dividend yield is relatively low, but the company has been steadily increasing it.
• 🪛 The September product refresh is expected to drive sales and earnings for the company, but there is uncertainty about its impact on the stock price.
• ✋ The departure of Chief Designer Jony Ive raises questions about the company's design capabilities and the strength of its brand.
• 🪛 The stock is currently driven by market sentiment and investors' willingness to pay a premium for the Apple brand.
• 🖐️ Pricing for the new iPhones in September will play a significant role in determining the stock's future performance.

Transcript

Two analysts just released their targets for Apple stock price, one calling for a 25% drop in the shares and another predicting shares will surge by 25% from here. Which is right and how do you know when to invest in Apple? In this video, I’m doing a complete Apple stock analysis including an analysis of the dividend. We’re talking investing in App... Read More

Questions & Answers

Q: How have Apple's earnings and sales growth been performing recently?

The market expects Apple's sales to increase by just 1.5% over the next year, and earnings are expected to grow by only 0.76%. However, Apple has a history of beating earnings expectations.

Q: How does Apple's dividend compare to other stocks?

Apple's dividend yield is currently at 1.5%, which is relatively low. However, the company has been steadily increasing its dividend and has room to further increase it.

Q: What factors impact Apple's stock price?

Apple's stock price is impacted by factors such as its earnings, sales growth, product cycles, brand reputation, and market sentiment towards the company.

Q: What are the potential risks and rewards of investing in Apple stock?

The video suggests that there is a downside risk in the Apple stock price, with a potential decline of up to 18%. The potential upside is limited, with a possible increase of around 7%. It advises keeping an eye on the fundamentals and waiting for a better price before investing.

Summary & Key Takeaways

• Apple stock has produced a 17% annualized return since 1980 and a 25% annualized return over the last decade, but the shares are currently considered expensive.

• Sales growth and earnings expectations for Apple are relatively low, which means any increase in the stock price will depend on an increase in the price-to-earnings ratio. Apple has a history of beating earnings expectations.

• Apple's dividend is currently at 1.5% yield annually, but the company has been steadily increasing it. Apple's strong financials include a large stockpile of cash, increasing the possibility of share buybacks.