Acquisition AAPL

Apple Inc. LogoThis recent acquisition I decided to go with one of my favorite product companies ever, Apple Inc. (AAPL). There is no question this company makes quality gadgets from all sorts. I am actually writing this post on my 2010 Macbook Pro and have my iPhone 4s right beside me. But besides my love of using Apple’s products, I think this company is a great investment over a long haul. Been a great investment for a while now and it’s not hard to believe that it will continue to be. Besides, all the negative talk about the company’s inability to innovate is just bringing the stock price down to a very nice valuations. It even promoted Warren Buffett’s Berkshire Hathaway Inc. (BRK.A) to invest a $1 billion stake into Apple Inc. (AAPL). I hate to say this because I try to buy these stakes on my own instincts, but if its good enough for Buffett, its good enough for me.

This recent acquisition is actually my 3rd addition to Apple Inc. (AAPL) portfolio holding. The first time I initiated the position was back in 2012, second was shortly after in 2013 and now in 2016. I did buy it after this recent ex-dividend date so I will only see the extra dividends the next payout quarter.

Company Overview: Apple Inc. was founded in 1976 and is headquartered in Cupertino, California. Altogether with its subsidiaries, the company designs, manufactures, and markets mobile communication, media devices, personal computers, and portable digital music players. It is an innovative technology company that has a portfolio of the worlds most leading brands. Its well known products and services include iPhone, iPad, Mac, iPod, Apple TV, Apple Watch, the iOS and Mac OS X operating systems, and iCloud. The company sells and delivers digital content and applications through its online stores such as the iTunes Store, App Store, iBooks Store, Mac App Store, and Apple Music. It has online stores in 39 countries. Additionally, it also sells its products through its brick and mortar direct sales forces, which now consists of 479 retail stores in 18 countries.

  • Dividend Yield: 2.5%
  • 3Yr Dividend Growth Rate: 62.5%
  • Payout Ratio: 24.4%
  • P/E: 10.3
  • Consecutive Years of Dividend Raises: 5

I purchased 11 shares for the price of $92.87 adding $25.08 to my annual dividend income.

This is the 4th time I am initiating a stock acquisition this year. This transaction is my additional purchase of AAPL shares into the portfolio. As of today, I now hold 39.41 shares of this company. Currently, AAPL ownership stake represents to be around 4.8% of my current portfolio value.

The 12-month dividend income increased to $2,587.

Thank you for reading & have a great day!

Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInPin on PinterestShare on RedditShare on TumblrEmail this to someone

16 Comments

  1. Investment Hunting on May 19, 2016 at 15:32

    Good buy Dividend Vet. Apple’s been getting a market beat-down lately. I think it’s mostly hype. People just love to hate this company. Meanwhile Apple is pocketing insane revenues every quarter. Great company, great products, extremely safe dividend.

    • DividendVet on May 19, 2016 at 23:13

      Yeah, beside’s Berkshire’s investment, Apple has been on a negative media frenzy. Its nothing new, Wall Street and its short term thinking… I believe this company is growing into a really nice longterm dividend paying machine that will sustain for many years to come. Just glad to be on the forefront and proud to be a shareholder of such a life changing company.

      Thanks for stopping by!

  2. Dividend Reaper on May 19, 2016 at 20:10

    Apple will continue to perform no matter what the haters say. Even if they don’t release anything new, their products appeal to the lesser technological minds that don’t want something that’s complicated. There is a HUGE market for that type of thing and Apple is right there to meet them with open arms. I won’t be picking them up because I feel tech is just too risky of a sector but I can definitely see why you and others are grabbing them while they’re on discount.

    -Dividend Reaper

    • DividendVet on May 19, 2016 at 23:28

      I know what you mean, though I really wouldn’t say as far as “their products appeal to the lesser technological minds that don’t want something that’s complicated”. Some of the best tech experts actually use and prefer Apple computers and products due to their versatility and application use.

      As far as risk is concerned, there are only a few tech companies I am willing to invest and Apple is one of them. For some people its a Risk, for me its Opportunity Cost. We all have decisions to make and I just feel this decision is right for me. I think Microsoft is another one I wouldn’t mind picking up.

      Thanks for your interesting perspective.

  3. desidividend on May 19, 2016 at 23:16

    Good buy,it seems to be flavor currently with DGI community,even i bought my first aapl shares back in 2013.
    Good company to be in.

    • DividendVet on May 19, 2016 at 23:38

      Usually a good sale in the stock market doesn’t very often go unnoticed by the community. I am always on a lookout. 🙂

      Cheers to 2013!

  4. Dividend Hustler on May 19, 2016 at 23:33

    Thanks for sharing DV. I’m with you with Apple. What’s the worst that can happen right? You buy a car and lose so much money yet people don’t mind… you buy some stocks in high quality companies and people are so scared…
    All good bud, glad to be a shareholder with you my friend. Keep it up and let’s keep hustling! Cheers DB.

    • DividendVet on May 20, 2016 at 00:00

      Oh yeah good point DB, don’t get me started how majority of people buy their cars here in Credit Happy Consumerist America. Majority of my friends and family are in that same boat. Though, some say stock market is gambling when they are playing high stakes depreciation game with their cars, lol… As far as fear is concerned, I think some people are scared because they watch dumb box (TV) and hear all that negative noise.

      Good hearing from you, good points!

  5. FerdiS on May 23, 2016 at 16:48

    Hi DividendVet — great buy… I also bought more AAPL shares recently.

    You mention 3 years of consecutive years of dividend raises. AAPL is now a Dividend Challenger (a streak of 5 years of dividend increases).

    Take care,
    FerdiS, DivGro

    • DividendVet on May 24, 2016 at 10:07

      Awesome to hear, glad to have you as a fellow shareholder.

      Yeah for some reason Dividend.com only shows 3 years dividend growth, but the dividend payout history definitely shows that it has been raising it since 2012. Weird, thanks for the update. 🙂 The future looks even brighter now.

      Take care.

  6. Data Lore on May 25, 2016 at 07:52

    Hi DividendVet.

    This is one of my favorite blogs. In any case, I love Apple. I became interested in Apple when they split their stocks and when they decided to offer a dividend. It’s still a little expensive for me (in terms of the cost per share), but I will definitely be looking at adding it to my small portfolio.

    Great blog!

    • DividendVet on May 25, 2016 at 12:07

      Thank you, I really appreciate it. You guys are the fuel to my financial independence engine and I hope to be yours!

      Apple is easily one of my top favorite product companies too, and what better way of loving the business than owning part of it. That is really great connection to have.

      Thanks for the kind words.

  7. Captain Dividend on May 28, 2016 at 10:36

    Thanks for the update. I’m really excited to see what the new iPhone7 is going to look like. It’s hard to imagine what they are going to add to it that will make it a compelling buy over my iPhone6.

    • DividendVet on May 28, 2016 at 13:30

      My pleasure Captain! You and me included, though I am still rocking my iPhone 5s and it works really great. Who knows through what might come out next… I am really looking forward to self charging technology coming out.

      Thanks for your thoughts.

  8. DIvidend Ten on July 2, 2016 at 20:20

    As a huge technology focused dividend investor, Everything I see tells me that AAPL is severely undervalued right now, which is rare given how most everything is fully valued. That said, they do face some headwinds and loss of confidence which may or may not be well-founded. In any event, if you believe in the AAPL thesis, I think it’s a good long term move. I had a good position in 2008 but had to sell for personal reasons. Anyway, I’ll probably be looking to initiate a position if and when we get another Brexit style correction in the market. Thanks for sharing.

    • DividendVet on July 4, 2016 at 13:52

      APPL sure fits my criteria of investing and just love their products that make everything else obsolete. Not sure what is your strategy, but everyone needs to do their own due diligence in order to follow a certain type of roadmap.

      Brexit was a joke of a correction, now the fall of EU would perhaps would cause some longer buying opportunities. It just shows, where there is fear and chaos, there is an opportunity hidden within.

      Best of luck!

Leave a Comment





Do NOT follow this link or you will be banned from the site!
How to whitelist website on AdBlocker?