you can get a 1.7% yield on stocks not trading this crazy. why do that if yield and asset value protection is your goal? i have no idea what apple can move up too but anyone betting this stock won't ever trade at 400 again is crazy. anybody who thinks iphone will continue getting cell phone companies paying them as much as they do is in for a shock.
Quote from ScalperJoe:
AAPL currently pays $2.65/quarter dividend, or $10.60 annual per share. At the current closing price of Friday, it represents approximately a 1.7% yield, slightly lower than the current yield in the S&P.
However, at some point the yield creates a floor on the stock when it becomes attractive for value investors if the price drops enough to make the yield well above the S&P.
AAPL is currently the heaviest weighting of SPY, around 5% (and 19% of QQQ). If AAPL maintains a healthy growth rate and creates enough cash to maintain its annual dividend payout of $10.60 per share, then the upside to owning AAPL vs. SPY/QQQ is outpaced given the potential capital appreciation of the stock relative to the index.
Of course, anything can change in the future regarding a company's growth, and a company can reduce its dividend on the common stock, or even eliminate it (as many financial firms did back in 2008).
October 25th surely will be interesting. I'm not savvy enough to make any actual price predictions, although I will state that the probability of a gap (up or down) in after hours is very likely.
