Making your money back about 17 times over is obviously much better than break-even. And it’s obvious to most that Apple (NASDAQ:AAPL) has more room to run. A few reasons why include:
- Apple’s new dividend of $2.65 per quarter, for a dividend yield of about 1.8%.
- The dividend is coupled with a $10 billion buyback plan for AAPL stock.
- The “new iPad” and a price cut for the iPad 2 will tighten Apple’s firm grip on the tablet market.
- Apple’s first-quarter earnings report showed profits rose 118% — so it’s still growing strong.
- Based on fiscal 2013 earnings forecasts of $49 per share, AAPL stock has a reasonable forward P/E of 12.2.
I said Apple was a bargain at $500, and I still think it’s a pretty good buy even at $600.