Apple

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

It's hard to discuss companies with cash without bringing up Apple ( AAPL). The Cupertino, Calif.-based company caught headlines in 2011 for having more cash than the U.S. government during the budget crisis, and the firm has been hoarding even more despite initiating a dividend payout with a 1.54% yield. That, by the way, is the first dividend payout that Apple's enacted since all the way back in 1995.

>>5 Stocks Ready to Pay Bigger Dividends

Apple continues to be a Wall Street darling. While the nearly $700 price tag is enough to scare many investors away, there's actually quite a bit of value left in this stock when all of that huge cash position is accounted for. The firm's current price-to-earnings ratio of 16 isn't particularly lofty considering Apple's growth trajectory, but take out the firm's cash and investments from its price (Apple has zero debt), and its adjusted P/E for the last four quarters drops to barely above 13.

That means that investors are pricing in less growth for Apple than they are in (more) boring blue-chips such as Johnson & Johnson ( JNJ).

>>5 Stocks to Benefit From iPhone 5

The release of the iPhone 5 should be a good "aha" moment for investors. Despite the new phone being panned by many reviewers as not a substantial change from previous models, it has already smashed any sales records that Apple had set for a new phone launch. As long as AAPL keeps bringing in dumptrucks full of cash, investors would do well to ignore the naysayers.

I'd expect to see a more aggressive return of value to shareholders in the next few quarters; with limited places to spend money, Apple's best off paying its owners.

I also featured Apple recently in " 5 Stocks Hedge Funds Hate -- But Should You?."

If you liked this article you might like

How to Make Your Life Successful Just Like Billionaire Warren Buffett

How to Get Rich Using Warren Buffett's Favorite Stock Market Indicators

How to Live Just Like Billionaire Warren Buffett

How to Make a Deal Like Billionaire Investor Warren Buffett

How to Invest Like Billionaire Warren Buffett