Why Apple stock is a great buy today

Apple has been down from the S&P 500 year to date and some investors may see it as a great buying opportunity today. The Motley Fool’s Daniel Sparks offers several reasons why investors may want to consider buying stock in the tech company today as they are down about 20% year to date.

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Daniel Sparks for The Motley Fool:

1. Apple generates huge amounts of money: The tech giant has generated nearly $ 108 billion in free cash flow (cash left over from day-to-day operations and capital expenditures) over the past 12 months reported by the company.

2. The tech giant’s service segment is thriving: Apple’s services business, for example, has seen revenue grow more than 12% year-over-year over the course of the year [fiscal third quarter]. As Apple’s second-largest business segment after iPhone, the high-margin services segment’s momentum, even during a period of macroeconomic challenges, is a good reason for continued growth in the tech giant’s overall business over the next few years. .

3. Apple pays a growing dividend: The tech company has provided regular annual dividend increases for shareholders, and further increases are likely in the coming years. By distributing only 15% of its earnings in dividends, the company leaves significant room for dividend increases.

MacDailyNews takes: Apple shares are a great buy today because they are significantly undervalued. You will probably never be able to time the market perfectly, but Apple is probably the healthiest company on earth, which is why it’s always a buy.

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