Meager Income

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Apple 7 for 1 Stock Split

Posted on | June 9, 2014 | No Comments

The Apple stock price has been on a tear lately and it is almost approaching its all-time pre-split-high of about $700 a share.  I’ve owned Apple for many years now.  I was pleased when Apple reinstated the dividend in 2012.  The dividends are great because I’m able to receive a return on my investment without having to reduce my ownership in a company and incur a capital gain at the same time.

Unfortunately, I sold too early about 10 years ago but I’ve since established a new position in AAPL.  I bought some shares in 2009 that I resisted selling and I also purchased additional shares when the stock price dropped last April.

I’m excited for the 7 for 1 stock split because I was planning on selling a few shares to diversify a bit anyway.  With the stock splitting I was hoping there would be investors out there that were waiting for the price to come down in order to to buy.  I’m pleased that the price has not only held but increased today.  If the price continues to go up in anticipation of product updates from Apple, I’ll sell a few shares to buy stock in another company whose stock hasn’t moved up as quickly as Apple’s.

I’m expecting Apple to increase the size of their iPhone this fall and for them to sell quite a few phones.  I, like many other iPhone 5 owners, will upgrade my phone. Additionally, I believe that smart phone owners who’ve grown weary of the Android OS but wanted a bigger screen will also upgrade to the new iPhone.  Additionally, I’m expecting Apple to add the Touch ID functionality to their iPads that will spur sales in that category.  More generally, Apple continues to make incremental upgrades to the rest of their products keeping them in demand.

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