It has been a crazy month so far. The beginning to April stocks has been a little rough due to all the fear and lower than expected growth numbers across many companies. If we look at the trend of the stock market though, good companies always go up during the long haul. That is the whole goal of dividend investing anyways. To pick good solid companies with tons of headroom to grow those dividends.
I feel I have made some great purchases this month even though the market has been very rough and I could have bought in at a lower price. I always stick to the research I do and the financials of the company instead of media hype.
The company I bought into this week has a very strong upside potential and is a very solid choices for a dividend stock
On Monday the 4th, I purchased 13 shares of Apple (AAPL) @ $111.20 a share.
Everyone knows Apple. The company has been one of the best technology gainers in it's sector for years. The stock has finally cooled off and dropped down to a level that I felt was not overvalued.
They are one of the best known tech giants next to Microsoft and produce some very high quality products. They have been loved by many consumers for their ease of use and aesthetic beauty.
Apple's numbers are very solid still going into the new fiscal period. The current level of the stock is a very solid platform that will only increase during the next few years. They have a bunch of new and exciting things coming that will fuel growth and revenue.
EPS is at a whopping 9.42 per share. This is a fantastic EPS compared to other technology companies.
P/E is at a very health 11.78. This is a very good level for the company compared to how amazing their EPS is.
Total revenue as of the beginning of the year stands at 234.44 Billion. This number truly puts into a perspective on just how much cash this company is banking.
Revenue growth is at 17.34%. When you take into perspective on how much money this company brings in it makes me really respect that they can bring in that high of a percentage on revenue growth.
Dividend yield at current levels sits at a low amount of 1.82% This is the only disappointing aspect of thisstock currently. If the yield is only at 1.82% then why did I buy it now? The company just had some amazing news on how they are going to be focusing on growing their dividend.
Current annual payout is at 2.08 with a payout ratio of 23.1% This company has so much headroom to grow their dividend. I'm actually super excited to see what the company raises the dividend amount to.
A few other aspects that really attracted me to buy into the company right now is also the fact on how they will be receiving great new revenue from things like increased use and acceptance of apple pay and their soon to be launching Apple TV network. These will be super huge revenue boosters for the company with tons of room to grow.
Last fact to boot, The company has over 203 Billion dollars of free flow cash which they have stated could run the company for 10 plus years.
It has been a rough start to the month stock wise but I feel I purchased apple at a great time. I will be looking to add to my position once the company announces the dividend yield increase. Over all, it is a very safe and sound investment that I can see me holding for years to come.
This is exactly what I want in a dividend investment stock. Plenty of headroom to grow the dividend, a steady guaranteed payout, and the safety in the company's financials.
I'm really looking forward to the rest of the year. I feel like my portfolio is off to a great start and its only the beginning of April!
Has anyone else made some great purchases this month?
How is your portfolio doing at the moment? Leave a comment below!
Full disclosure: Long AAPL
Image courtesy of renjith krishnan at FreeDigitalPhotos.net