Apple recently made it’s earnings announcements. It sold 37.1 million iPhones this year,which is an increase compared to last year’s 35.1 million iPhones. They also sold 19.5 million iPads, up from 11.8 million. Some people are complaining about Apple because they’re growth rate isn’t as big now as it was a year ago. But make no mistake, they are still growing. Apply has had years of long term, steady growth, which is one of the reasons I bought this stock.
They have raised their dividend payments from $2.65/share up to $3.05/share. They are also planning to buyback more stock.
There is no doubt that the price of Apple’s stuck has suffered. It peaked a few months ago around $700 and now is in the low $400s. But my plan to invest in Apple stock isn’t based on the short term but instead the long term. I expect that twenty years from now, Apple stock will have grown in tremendous value. Not because of stock market fundamentals, but because the business has been a source of growth and innovation for decades. It’s true that I bought some Apple stock when it was closer to the high, but I haven’t sold it in panic. Instead, I bought more Apple stock when it was just a tad above $400. We’ll see how that pans out in the long run.
Chevron has also issued an earnings report. It has increased earnings from $3.15/share a year ago to $3.18/share this year. Considering that estimates were around $3.09/share, Chevron has done a good job beating them as it continues to show steady growth.
Chevron has been growing it’s dividend rate steadily over the past twenty-five years. In this announcement, they indicated they are increasing from $0.90/share to $1.00/share, which is an 11.1% increase. That is great! It’s one of the key reasons I invested in it.
While I use real estate as my primary wealth building tactic, I am also keeping my eye on the handful of stocks I have invested in as well to form a second source of income.