Recent Buy – Apple Inc

Apple

First purchase of 2016! Well, that didn’t take long…the year started off with one of the worst starts in the stock market going back a decade or so. With the depressed market comes great opportunity to buy quality assets and putting my money to work. Whenever I make a purchase, I like to share my buys to document and illustrate how I am building my income stream over the course of months/years. My main goal is simply to invest at regular intervals and build my passive income over the course of time. In a sort of ways, I am building my own pension, hoping to get to a point where I can simply live off my dividends without touching my principal investment.

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A Closer Look at Apple Services

Apple

Apple Inc (AAPL) is a global behemoth. In true tech-industry fashion, Apple has grown by leaps and bounds over the course of last few years and is now the most valuable company in the world. Much has been written about the legendary design and the Apple products – but one segment that does not get a lot of love from investors, although it might turn out to be one of the most important ones in the future – Apple Services segment. As technological revolution in hardware appearing to plateau, some authors and analysts have hinted at Apple looking to turn into a service-based software company rather than the hardware focus that it now remains. This article takes a closer look at Apple Services.

Apple’s Business Segments

The major business segments as of today are listed below. The major reported segments change over time as products rise and fall due to demand.

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Apple Inc (AAPL) Dividend Increase

Apple
Apple Inc (AAPL) announced a 10.6% increase in its cash dividend. The quarterly cash dividend will increase from $0.47 to $0.52 per share and payable on May 14, 2015 to shareholders on record as of May 11, 2015. The annual dividend rate goes up from $1.88 to $2.08. Yield going forward is 1.57%.

In addition to the dividend raise, Apple increased its share repurchase program from $90B to $140B. Apple plans to utilize a cumulative total of $200 billion of cash by the end of March 2017 (Apple’s cash pile now stands at $197B).

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Recent Buy – Apple Inc

Apple After a lot of contemplation and deciding whether to wait or pull the trigger on a purchase, I decided that it was as good a time as any to top up my investment in the largest company in the world. Last week’s weakness in the markets provided me with an opportunity to add add a few shares in Apple Inc (AAPL).

In this purchase, I was able to pick up 12 shares in Apple Inc (AAPL) on Mar 26, 2015 for $123.83, which adds $22.56 to my annual dividends.

Over the past couple of decades, the company has remained growth focused and has made a lot of money for investors and traders. But I, as a dividend growth investor, was not interested due to the lack of dividends – let alone the growth of dividends. Things started changing in the summer of 2012 when Apple declared that it will start paying out dividends. While this was seen as a shift from growth to value play for investors, some headed for the exit door and the stock suffered with a fall of over 40% from its peak. However, over the course of last two years, it has become clear that the company is not stagnant and resting on old accords – the company still maintains the drive to innovate and push forward with new products and services.

Earlier in the month, Apple became the newest member of the Dow Jones Industrial Average having replaced AT&T Inc (T). While this was not a major contributing factor in my decision to purchase, I like the confidence that exists in Apple even though it is the largest company in the world and can continue growing. I have no doubt in my mind that the company will sooner or later easily surpass the $1T mark in market cap value.

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