3 Things That Can Boost Apple Inc. (AAPL) in 2013

Page 1 of 3

Apple Inc. (NASDAQ:AAPL) has lost over $180 worth of its share price over the last three months – a 26.6% decline – but there are plenty of reasons for Cupertino bulls to consider buying on the dip. We’ve covered these catalysts individually before, but it’s important to note what some of the tech world’s top analysts are saying as well.

Apple Inc. (NASDAQ:AAPL)

Gene Munster, of Piper Jaffray, has been very outspoken about Apple lately, calling for a TV to be introduced next fall, while maintaining a $900 price target on the stock. On CNBC earlier this week, Munster introduced three concepts that he believes can boost shares of the tech company in 2013.

1) “An increased dividend in April.”

Regarding this point, there’s no argument that Apple Inc. (NASDAQ:AAPL) has the cash to increase its dividend yield. With an estimated $120 billion in cash, some estimates call for this balance to double, perhaps even reaching $300 billion by 2015.

Now, it appears that Apple will not use some of this liquidity to pay a special dividend to help shareholders fight a likely rise in taxes on capital gains and dividends (see Will Apple Pay a Special Dividend?), so Munster’s prediction is logically valid. What remains to be seen, however, is if Apple performs any major acquisitions next year, or continues to support Sharp, as one analyst suspects.

According to Barron’s, Apple’s payout ratio is “20% of projected earnings,” which is far below the likes of Microsoft Corporation (NASDAQ:MSFT) (32%) and Cisco Systems, Inc. (NASDAQ:CSCO) (29%). At a projected yield of 2.0% – below Microsoft (3.3%) and Cisco (2.8%) – it’s very possible that Apple will want to reward its shareholders at a higher rate next year.

Now, it’s worth mentioning that Apple Inc. (NASDAQ:AAPL)’s yield is still above International Business Machines (NYSE:IBM) (1.75%) and Google Inc (NASDAQ:GOOG), which does not pay a dividend, so there is some justification if this prediction falls through.

Continue reading to see Munster’s next concept…

Page 1 of 3
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!