Apple Inc (NASDAQ:AAPL) is one of those huge brands always discussed, always on the minds of investors. That being the case, it is surprising that such a highly followed company has such good metrics as we show here in 4 reasons that we think Apple is still such a quality buy for investors.
Apple provides investors a dividend income of approximately 1.5% per annum. With future net income of AAPL covering over 4 times their dividend payments, it is unlikely there is much risk of this payment dropping.
2. Financially Healthy for Growth
Apple (NASDAQ:AAPL) has a very low debt to equity ratio of approximately 30%. With cash, short and long term investments of over $180 billion and long debt of around 35 billion, Apple is at hardly any risk of having financial problems. With this much cash available they can invest in all sorts of interesting growth projects and easily take on the cash costs of any failed ones.
Apple is trading on a forward Price to Earnings (P/E) multiple of approximately 13.7. For such a large safe company with growth opportunities this is very low. To put that into perspective, the market trades on a multiple of around 19. Further to this, based on the analysts expected long term growth for AAPL, which varies quite a bit, we are looking at a price to earnings growth ratio for the stock of between 0.5 and 1.3. This means that on a longer term growth basis Apple is underpriced to fairly priced, not bad for such a large safe stock paying a nice dividend.
All of the above in our assessment make Apple Inc (NASDAQ:AAPL) a quality stock that should be in most investor portfolios, or at least deserving of some consideration. Income, health and value, all the major areas ticked off that investors would want to see in any stock, let alone such a large well known brand name.