Why Apple ($AAPL) shares are ripe for picking

Apple store photo

Anyone considering an investment in Apple [stckqut]AAPL[/stckqut] stock faces a challenge. The company is huge, its shares are volatile, and its moves are widely followed on Wall Street.

Yet still, this is a good time to buy shares of Apple.

In fact, you may already have a stake in the tech titan if you own a S&P 500 index fund. As a market-cap weighted index, the S&P’s largest position is Apple, with a market value of around $550 billion that is worth more than the 90 smallest S&P 500 components combined.

And for those who are bullish on this stock, it appears that once again, Apple has found a short-term bottom. The chartists have been pleased with the stock’s recent performance, the Wall Street analysts have issued upgrades. Beyond that, here’s what’s working in favor of Apple:

  1. Bargain valuation
  2. Dividend and dividend-growth
  3. Buffett’s billion-dollar bet
  4. No news isn’t bad news
  5. Software innovation, not hardware innovation
  6. Value is hot, growth is not

Objectively, those who shorted Apple or bought puts on the stock a few months ago made smart moves. But that doesn’t mean that long-term or even medium-term investors should consider the stock perpetual fodder for the bears. Indeed, if you’re investing for tax-efficient capital gains and long-term dividend growth potential, enjoy your Apple.

Source: Why Apple shares are ripe for picking – MarketWatch

Photo by Oswaldo Rubio

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