Attractively-Priced Apple Has Phenomenal Dividend Growth Potential

Apple offers investors tremendous capital appreciation and dividend growth potential, in our view. The company is a true financial powerhouse.
Initial reports indicate Apple's new iPhone 12 offering, its first-ever 5G-capable smartphone, is selling well. We expect sentiment to remain positive.
The company's digital services offerings have grown at a brisk pace of late and represent an enormous source of long-term upside. Its "halo effect" remains strong.
Apple is reportedly contemplating entering the self-driving car market, which could yield even more long-term upside possibilities. We expect Apple to succeed in this area.
We apply a margin of safety in our valuation work. The high end of our fair value estimate range is $168 for Apple, implying more room for shares to run.
Data by YCharts
Image Shown: Shares of Apple have climbed significantly higher during the past year as of this writing, and we see room for additional capital appreciation upside and tremendous dividend growth potential.
By Callum Turcan
One of our favorite companies is Apple Inc (AAPL) as the firm offers investors a wonderful combination of capital appreciation and dividend growth upside. Apple has three of the core considerations we look for when seeking to identify high-quality companies and long-term investment ideas: 1) a pristine balance sheet (Apple has an enormous net cash position--a key cash-based source of intrinsic value), 2) a stellar free cash flow profile (relative to its revenue, Apple’s capital-expenditure requirements are modest, facilitating robust free cash flow generation), and 3) its growth outlook is both bright--the firm just recently... Read more

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