This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Apple Bears Fruit: Widows, Orphans Take Note

Stocks in this article: AAPLGMIBMGOOGMSFTCHL

NEW YORK (TheStreet) -- We like to think of the tech titans in Silicon Valley as as being new, young, quite unlike the stodgy industrial giants of a previous age.

But Apple (AAPL), which in some ways started the tech boom, has now been public for 33 years.  That's a third of a century.

As was said of General Motors  (GM) in the 1950s, when its Detroit headquarters was about the same age, what's good for Apple is good for the U.S.A.

Apple has become a giant, a bellwether for the tech sector, and a major force in keeping an American advantage in the global tech marketplace. Apple is the best bet for "widow and orphan" investors who want dependable dividends and security in retirement. Steve Jobs and Steve Wozniak's baby is all grown up.

Some say this has been a tough year for Apple, but it's ending in triumph. Counterpoint Research says the iPhone 5 and 5s are pounding their rivals from Samsung, and that three of the top four selling phones in the world are now made by Apple. Apple also beat Samsung in this round of a patent lawsuit in Korea.

Apple even has 10% of the phone market in China, and that's just as China Mobile (CHL) , the nation's largest carrier with an estimated 700 million subscribers, starts taking pre-orders. Counterpoint's graph of monthly market share shows Apple as a hockey stick, pointed straight up. Apple is still in third place in overall market share behind Samsung and Lenovo, but it's in third place with a bullet.

For those who bought Apple in the spring or summer, when it bottomed out near $400 a share, their patience has been rewarded. It's now at $560. Even at that price it's something of a bargain, with a below-market price-to-earnings multiple of 14.15 and a yield of 2.18%.

According to the annual list of the Fortune 500, Apple is by far America's biggest tech company. It's more than two times bigger than IBM (IBM), bigger than GM itself, and is far-and-away the most profitable name on the board, bringing $1 of every $4 in sales to the net income line.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs