One Short Term Reason To Buy Apple (NASDAQ:AAPL)

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By Jacob Maslow

Apple Database FoundationDBIf you’ve been reading this blog, you’ve probably already know that there are many reasons not to buy Apple stock. I’m hardly alone in arguing that there’s really not much upward potential for this stock. It still has to deal with that 17 price per earnings ratio. It’s like an imperial tractor beam, holding down this mammoth company.

While smaller companies like Facebook can get away with a 76 price per earnings ratio, with Apple it’s a completely different picture. There’s just too many players in the mix for the stock to get too crazy. With that said, there is one particularly good reason to buy Apple at least that’s the short terms play.

The company has been paying dividends since it reinstated dividends back in 2012. So far, the company has increased its annual dividend payout by 11%. According to some analysts the dividend for this year might be raised by 15%. This may be enough positive development for the stock to produce some upward pressure.

Again, I’m not advocating a long term hold and buy strategy for this company until it goes public with its plans for growing the business to a 1 trillion market valuation. We can make all sorts of guesses but the reality is that up until it can come up with a clearly defined strategy, this may not be the time to go along on Apple computers. Still, the upcoming dividend announcement may be a good opportunity to do a short term trade on this stock.


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