Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, education, and enterprise and government customers worldwide. The company is the largest publicly traded company in the US by market capitalization. The company started paying a dividend in 2012, and has been raising it every year since then.
The company has increased dividends for 4 years in a row, since it initiated a quarterly dividend in 2012 at roughly 38 cents/share. The last dividend increase was in April 2016, when the company raised its quarterly dividend by 9.60% to 57 cents/share. After the latest string of dividend increases, many investors are wondering if Apple can become the next dividend growth darling to fill in their portfolios at a lower valuation than many other companies.
According to reports I have been reading, Apple now has a brand which is supposedly more valuable than that of Coca-Cola.
To be honest, I am not a big fan of Apple as an investment. The reason is that I guess I just cannot forecast whether earnings per share will be sustainable over next 5 – 10 years, or they will plateau and go down. The future value of the business 15 – 20 years from now will be largely driven out of the profits that will be generated in 15 – 20 years. Given the competitive nature of the technology industry, and the rapid product obsolescence, it is more difficult to determine the sustainability of Apple’s earnings.