Poised to touch $120, the question which is uppermost in every investor’s mind is whether to hold on to Apple Inc (NASDAQ:AAPL)’s stock or to collect all the profit and make an exit. Termed as ‘bye or buy’ on CNBC, the debate which ensued caused majority of experts on the panel to settle for ‘buy’ as against ‘bye’ owing to a variety of factors.
September 2012 was the last time that this stock had tasted its all-time high and then it plummeted to rise again to touch the same heights on Friday, 31st October, 2014. Experts have attributed this rise to Apple Inc (NASDAQ:AAPL)’s good performance in the smartphone sector, not to mention predicting a lucrative holiday season for its products. In the words of Peter Najarian of OptionMonster –
“I think it’s going to $110. I’ve said it for a long time, and now I’m starting to shift and think it’s going even higher because the stock has already moved off of this record launch that they had of this iPhone, when you look at the 6 and 6 Plus, internationally now 60 percent of their revenue drawn from that aspect of it as well.”
That said, experts rate Apple Inc (NASDAQ:AAPL) as being bullish, meaning investors who are yet to have a share of pie can still make an entry. There are several incentives for buying the stock and one of the foremost is its dividend payout ratio which has been consistent at around 30% ever since the company reverted to rewarding its share-holders.
Another reason is the buy-back policy of the company and it has benefited the value of the stock by rendering it scarce as also causing the earnings accruing from it to peak. Hence, while it is time to bid adieu to several stocks like Fedex and Calgene, Apple Inc (NASDAQ:AAPL)’s stock is one which certainly must not be disposed.
This article has been written by Vinita Basu.