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Apple Inc. (AAPL): Do Expensive Habits Equal Expensive Buys?

Apple Inc. (NASDAQ:AAPL) shows a “stingy” dividend yield of 2.5%, while Disney’s is approximately 1.3%. Now, its hard to place blame on a company whose stock has increased 22.3% over the past twelve months and nearly 7% YTD, but Google does not issue dividends at all. The chart below will show how these companies earnings yield is just the opposite of their P/E. Typically, the higher the P/E, the lower the earnings yield.

DIS Earnings Yield data by YCharts

The Foolish bottom line…

Apple Inc. (NASDAQ:AAPL) may have more than enough cash to build a project such as the one described above, but will its shareholders become agitated with its dividends and a falling stock? Apple Inc. (NASDAQ:AAPL) is very cheap, but may need to remove the salt from those that feel wounded by its falling stock and high dividend expectations. Google and Disney are more expensive, but have recently performed better with their stocks, and have spent/are spending less on their projects.

Tyler Wofford has no position in any stocks mentioned. The Motley Fool recommends Apple, Google, and Walt Disney. The Motley Fool owns shares of Apple, Google, and Walt Disney.

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