Wednesday, September 16, 2015

Recent Buy - Apple (AAPL)

Hi Everyone,

The buys keep piling up this month.  For all you readers out there waiting for the dividend income post, I've got bad news...  you are going to have to wait a bit longer.  I have another buy post coming after this one before I get up the dividend income.  I'm trying the best I can to get caught up.  Life is getting in the way a little bit right now but no complaints here.  

Personally, these buy posts make me hungrier than ever to keep saving, keep making money and keep investing.  The income that we are starting to make every month is starting to put a significant dent into our expenses.  If you jump over to our Portfolio page, you can see that we almost have an entire month of expenses taken care of if we choose to quit our day jobs.  Eleven more months to go and we are home free!!

In this post, I asked you readers what company I should buy but, there were no comments and our money is just burning a hole in our pockets so no more waiting around.  

With this purchase, my wife and I have put a total of around $38,000 to work since the beginning of 2015.  My goal of investing roughly $40,000 is coming ever so close! We are about three quarters of the way through the year and our total is 95% of the way to our goal.  So now for the numbers... 

We purchased 17 shares of Apple (AAPL) at $116.50.  This purchase adds $35.36 of annual dividends to our account.

We now own 17 shares of AAPL as this was a new addition.  We are now invested in 39 individual companies.  

AAPL Chart:


P/E:  13.35
Yield:  1.80%
Market Cap:  650B
Dividend Growth Rate (2yr):  10%
Dividend Growth:  3 years
Payout Ratio: 25%

Apple needs no introduction.  The company is massive and generates an insane amount of revenue per year.  As you can see from the chart above, they have recently just started to pay dividends again after many years of reinvesting capital back into the company.  That reinvesting back into the company has given them close to $200 Billion (with a B) in capital.  With that amount of firepower, they can pretty much do whatever they want.  In the short term, they have committed to paying out $200B to shareholders.  Unfortunately, most of their capital is tied up overseas so they have had to take on a lot of debt in the recent years to be able to payout such a massive amount of money to shareholders.  No worries though as they can easily payoff this debt right now.

Apple has pulled back roughly 13% from its highs and I thought it was a good time to start a position in the retirement accounts.  They are buying back a ton of shares and this will only enhance the dividend growth, the earnings per share and hopefully the stock price.  All good things from this company, just wish I would have bought them much sooner.

The yield is a bit lower than my overall portfolio but this is more of a play on the dividend growth into the future.  I can only hope AAPL uses that massive war chest of money to expand its business and keep throwing out massive amounts of capital to shareholders.

You can check out all the other purchases we have made for the year on my Stock Purchases and Sells page.

So there you have it, the next building block on the path to the American Dividend Dream!  What do you think, good purchase, bad purchase?  What are you looking to buy next?


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