Australian Investment Blog

Should we chase yield or growth? Today's subject of growth v yield could be discussed at great length but we have attempted to touch on a few topical points to convey our thoughts. Last night's news from APPLE we believe is a great illustration of what investors should both be looking for, and potentially avoiding. APPLE has just reported some headlines that would initially excite many yield hungry investors: 1. They increased their dividend, similar to a year ago, from 57c to 52c. 2. They are planning to increase equity buybacks from $US140bn to $US175bn. 3. But they experienced a first quarterly revenue fall in more than a decade, with another decline forecasted to follow. APPLE's shares have tumbled well over 5% this morning AEST in late US trading, below $US100. The market is voting with both feet on the fear that we have seen the best from APPLE in the short to medium term even though its dividends are rising.
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