Friday, October 14, 2022 12:04 pm1 Comment

• Opinion

Apple is down less than the S&P 500 year to date, and some investors may be overlooking it as a great buying opportunity today. The Motley Fool’s Daniel Sparks offers several reasons why investors may want to consider buying shares of the tech company today while they’re down about 20% year to date.

Daniel Sparks for The Motley Fool:

1. Apple generates massive amounts of cash: The tech giant generated nearly $108 billion in free cash flow (the cash left over after day-to-day operations and capital expenditures are accounted for) in the company’s reported trailing 12 months.

2. The tech-giant’s services segment is thriving: Apple’s services business, for instance, saw revenue grow more than 12% year over year during [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 — makes a good case for continued growth in the tech-giant’s overall business in the coming years.

3. Apple pays a growing dividend: The tech company has provided regular annual dividend increases for shareholders — and more increases are likely on the way in the coming years. By paying out just 15% of its earnings in dividends, the company’s leaving significant room for dividend increases.

MacDailyNews Take: Apple stock is a great buy today because it is significantly undervalued. You’ll likely never perfectly time the market, but Apple is arguably the healthiest company on earth, that’s why it’s always a buy.

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