{"id":67277,"date":"2023-09-30T13:27:44","date_gmt":"2023-09-30T17:27:44","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/apples-strategic-role-within-the-dividend-income-accelerator-portfolio-nasdaqaapl\/"},"modified":"2023-09-30T13:27:49","modified_gmt":"2023-09-30T17:27:49","slug":"apples-strategic-role-within-the-dividend-income-accelerator-portfolio-nasdaqaapl","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=67277","title":{"rendered":"Apple’s Strategic Role Within The Dividend Income Accelerator Portfolio (NASDAQ:AAPL)"},"content":{"rendered":"
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Investment Thesis<\/strong><\/h2>\n

In my previous analyses for Seeking Alpha, I discussed the acquisitions of Schwab U.S. Dividend Equity ETF (SCHD), Realty Income (O), Philip Morris (PM) and Royal Bank of Canada (<\/span>RY) for The Dividend Income Accelerator Portfolio. Those picks were the first four acquisitions for the portfolio.<\/span><\/p>\n

The Dividend Income Accelerator Portfolio aims to blend dividend income and dividend growth while emphasizing a reduced risk level and striving for an attractive Total Return.<\/p>\n

In my opinion, The Dividend Income Accelerator Portfolio represents an ideal opportunity for investors to benefit continuously from increasing dividend payments of companies that pay sustainable dividends. This investment approach allows you as an investor to steadily increase your wealth while investing with a reduced risk level.<\/p>\n

At the same time, it ensures that you can steadily become more independent from price fluctuations of the broader stock market due to the continuously increasing dividend payments of the companies included in The Dividend Income Accelerator Portfolio.<\/span><\/p>\n

In this investment analysis on Apple (NASDAQ:AAPL<\/span>), I will show you why I have decided to add the company to The Dividend Income Accelerator Portfolio. The Apple position has the strategic role of reducing the portfolio’s risk level while helping to increase its expected Total Return (when investing over the long term). This makes Apple the ideal risk\/reward choice for The Dividend Income Accelerator Portfolio.<\/p>\n

Apple has an enormous financial health (underlined by its Aaa credit rating from Moody’s and its Return on Equity of 160.09%), and disposes of a current Free Cash Flow Yield [TTM] of 3.64%, which serves as an indicator that the company is attractive in terms of risk and reward.<\/p>\n

In addition to that, it can be highlighted that Apple has significant competitive advantages such as its own ecosystem, its loyal customers, and a long track record of successfully launching new products as well as integrating new acquisitions into its existing business units. These significant competitive advantages raise my confidence that the risk level for Apple investors is relatively low.<\/p>\n

My DCF Model currently indicates an Internal Rate of Return of 9% for Apple at the company’s current price level. This makes Apple an attractive investment, particularly when taking into consideration its reduced risk level for investors.<\/p>\n

With the strategic acquisition of Apple, I believe that The Dividend Income Accelerator Portfolio is now even better positioned when it comes to risk and reward.<\/p>\n

The Dividend Income Accelerator Portfolio<\/strong><\/h2>\n

The Dividend Income Accelerator Portfolio’s objective is the generation of income via dividend payments, and to annually raise this sum. In addition to that, its goal is to attain an appealing Total Return when investing with a reduced risk level over the long-term.<\/em><\/p>\n

The Dividend Income Accelerator Portfolio’s reduced risk level will be reached due to the portfolio’s broad diversification over sectors and industries and the inclusion of companies with a low Beta Factor.<\/em><\/p>\n

Below you can find the characteristics of The Dividend Income Accelerator Portfolio:<\/em><\/p>\n