Apple is known as one of the tech giants even in the midst of crisis. You can easily conclude that Apple is a great company. It is one of the best global cash cows and that too the biggest one. And it continues to bring out some or the other profits for its investors. There is a lot of scope in this country and it will continue to grow and that is how Apple gets its share value. Apple still places a big reliance on the iPhone. Though, the product is declining, and also there has been no new change in the iPhone new models for a long period of time. This is a thing of worry now. So should you invest through a broker such as STR Capital and buy Apple stocks?
Should You Buy Apple Stocks?
And there has been a lot of concern regarding the iPhone and the no new changes in it. The Apple CEO is a great financial expert, but now people are doubtful even on that. One of the most useful hardware products if Apple has ever launched then it is the Apple Watch. There can be many things that Apple can offer inside the hardware space and also by being genuine to its brand. Apple is regarded as a very great company by many people but it’s not the correct time to invest or buy stocks till the time the Apple company doesn’t make its energies flow in the right channel i.e. use its capital in a better way. And till the time share prices don’t get down to a level which is reasonable.
Lets’ take a look at some of the Pros & Cons of the Company –
- Off late Apple’s huge cash store has reached very good and excellent levels. March 2020 is the month in which the company had $190 billion in capital and investment. And the cash is returned to the shareholders through dividends and stock buy backs. At present, Apple is having a 1% dividend yield. And also the company is increasing its payout annually. Also, it has instituted quarterly stipends at the request of its shareholders. And after they have taken the decision for this, their quarterly stipend doubled.
- The dividends and the buybacks are consistent which also shows that there is no way Apple can stop. It will continue to grow in spite of the global pandemic. Apple increased its dividend by 16% in the financial year 2018. Then, it increased its dividend by 5% in the financial year 2019. And in the financial year 2020 i.e. the first quarter, its dividend increased by up to 6%. This is just not enough, it off late announced $50 billion for its share buyback program which is less than $67.1 billion which was spent by Apple last year in re-purchasing the shares.
- Whereas, other companies simply cut short their dividends and stopped re-purchasing of shares due to the global pandemic. One of the best parts about Apple which you can see is that it is pretty confident about its position of capital. When it comes to the service department’s growth, one thing that you will notice is the firm’s current earnings reports. According to the service section, quarterly revenue of $13.34 billion i.e. up to 16% last year has been reported. And such services comprises of the offers like iTunes, and app store which is at a peak margin.
- And one of the new services which Apple’s service section is offering these days is the Apple TV Plus- Streaming Service. It also had a victorious quarter and the credit for this goes to the people who switched to these services. Then again Apple gets more sources of revenue compared to the iPhone purchases because of the 1-year subscription to Apple TV Plus. In which the consumers are buying iPhones and iPads. Plus, the consumers have been paying for subscriptions for the latest shows. It is also believed that Apple’s services revenue has doubled in the year 2016 to 2020.
- Apple Company at present has more than 1.5 billion installed devices globally. Apple is the only one such firm which can instantly arrange new services and software to nearly 1 billion iPhone users and there are millions of devices of Apple which are self disseminating and this is one such hard and fast fact that guarantees that the firm will continue to grow in the coming years. More Apple products are used by the consumers, the more the developers will spend their time creating a useful and fun-filled app for the App Store. And this keeps the current consumers busy and also appeals to the new customer.
- Then, there are some features in Apple’s iPhone that the user can use when they are communicating with another iPhone user. This increases the effect of the network which makes the devices of Apple more useful and also increases the number of people using it.
So you can trade through a brokerage such as STR Capital and decide on your own, after you have all the info, on whether or not to trade Apple stocks.