Table of Contents Hide
- About Apple Stock
- The Impact Of The Coronavirus Pandemic On Apple Stock
- Apple Stock Split
- Is It A Good Time To Buy Apple Shares?
- How To Buy Apple Stock Direct?
- Related Articles
Apple is one of the well-known tech companies with a high-performance stock. That is why a lot of investors want to know how to buy Apple stock direct. As no one would like to miss out on a good means of making money.
Buying the shares means you are a joint owner of the company, especially if it’s a long-term investment. You will keep receiving your own share of the money in form of dividends.
Over the years, Apple stock has more than tripled in value. In fact, it has become more appealing now that the stock has split. This makes it affordable for investors who have the money. The stock was recorded to have dropped from $499.23 at the close of Aug. 28, 2020, to $127.58 at the opening on Aug. 31.
In this article, we will take you through a step-by-step guide on how to buy Apple stock direct but first, you need to know more about the stock.
Here’s a table to guide you.
About Apple Stock
Apple Inc. is a multinational technology company with headquarters in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Tech technology companies, alongside Amazon, Google, Microsoft, and Facebook.
Apple stock trades on the NASDAQ Global Select Market as (NASDAQ: AAPL) and had its initial public offering (IPO) on December 12, 1980. It went public at a price of $22.00 per share and is a cash dividend stock. You can see the Apple stock dividend history here.
As of 30 November 2020, the Apple stock traded at $119.05 +2.46 (2.11%) and it is one of the low-risk, high reward stocks available. The stock can be purchased through any brokerage firm, including online brokerage services. It has no dividend reinvestment program (DRIP) but most brokerages allow you to reinvest your dividends.
Other notable features of the Apple stock are :
In August 2018, Apple became the first publicly traded U.S. company to be valued at over $1 trillion and just two years later in August 2020 became the first $2 trillion U.S. company.
Apple’s revenue as at the end of September 2020 (fourth quarter) fiscal year is $64.7 billion, and quarterly earnings per diluted share of $0.73.
The Coronavirus affected a lot of businesses, including the stock market. Since the beginning of the virus in March, Apple’s stock price has experienced a negative fluctuation.
The stocks’ last closing price was USD$115.98, which is 62.95% down its initial closing value of USD$313.05 and 83.32% down on the lowest point reached during the March crash when the shares fell as low as USD$212.61.
However, as the year comes to an end, Apple’s stock price seems to have bounced back. The CEO, Tim Cook, while announcing the financial results for its fiscal 2020 fourth quarter that ended September 26, 2020, said “Despite the ongoing impacts of COVID-19, Apple is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive.
From remote learning to the home office, Apple products have been a window to the world for users as the pandemic continues, and our teams have met the needs of this moment with creativity, passion, and the kinds of big ideas that only Apple can deliver.”
Apples’ CFO, Luca Maestri also said, “Our sales results and the unmatched loyalty of our customers drove our active installed base of devices to an all-time high in all of our major product categories. We also returned nearly $22 billion to shareholders during the quarter, as we maintain our target of reaching a net cash neutral position.”
Apple Stock Split
Apple’s stock has split five times since the company went public. The stock split on a 4-for-1 basis on August 28, 2020, a 7-for-1 basis on June 9, 2014, and split on a 2-for-1 basis on February 28, 2005, June 21, 2000, and June 16, 1987.
Apple’s primary reason for the stock split was to make the shares more affordable, and more attractive to people looking to invest. So the lower price point of the shares may appeal to potential buyers. If you’re already an Apple shareholder, stock splits don’t affect the value of your holdings.
Here’s how the 4-for-1 split works:
Let’s assume that as of the Record Date (August 24, 2020) an investor owns 100 shares of Apple common stock and the market price of the stock is $400 per share, so that the investment in Apple is worth $40,000. Let’s also assume that Apple’s stock price doesn’t fluctuate between the Record Date and the split date. Immediately after the split, the investor would own 400 shares of Apple stock, but the market price would be $100 per share instead of $400 per share. The investor’s total investment value in Apple would remain the same at $40,000 until the stock price fluctuates.
When the markets closed on 28 August one Apple share was worth $499.23, and when they opened on Monday 31 August, following the 4-for-1 split, they were worth $127.58, closing the day at $129.04.
Dates to Note About Apples’ Stock Split
Apple stock is at the center of public attention following its 4-for-1 split, and this has increased interest in the stock which may as well shoot up the company’s share price. If you want to learn more about the Apple Stock split, Click here.
You may be wondering if it’s a wise decision to buy Apple Stock. Well, the first thing is to know if the money you are willing to invest with is one you can afford to lose. No investment is risk-free, similarly, the Apple stock is really volatile.
Here are some very important questions you need to ask yourself and get a proper answer before buying Apple stock direct. Because in the end, it all depends on you since it’s your money.
#1. Can you afford to invest in Apple stock?
Although the Apple stock has split for 4-for-1 making its price cheaper and more accessible to a lot of investors, you still need to be sure that you can afford to invest.
Bear in mind that there’s a third party- your brokerage firm, that you will need to pay, and some other surrounding fees to your investment like tax, stamp duty, and maybe capital gains.
#2. Do you want a long term or short term investment?
If you are seeking an investment that will yield in the long term, then I strongly advise AAPL. But if it’s a short-term investment, then AAPL is not a good idea.
#3. Are there any Recommendations for Apple Stock?
Find out if there are any stock/financial analysts that recommend the Apple stock. You can even use stock screeners to see which one comes up with the Apple stock as a viable stock.
#4. How does Apple stock fit into your portfolio?
You’d like to know how the Apple stock fits into your investment portfolio. Whether you are diversifying your investments or you are putting all your investments into one stock. Remember, diversifying your investments is a good way to reduce the risk of investments.
#5. Company Record?
Do proper research on the Apple company, check out its quarterly financial reports, and see how the money is doing. Also, check the performance of its major markets like China.
#6. What are the Stock details?
Find out information like the stock price, closing price, opening price, dividend yield, PE ratio, and lots more.
Getting the right answers to these questions can help you decide if buying the Apple stock direct is a good idea or not. No investor likes to lose money, so be sure you do your thorough research before deciding.
Also, don’t believe everything you hear or see. Apple stock has a long record of performing well in the market. It’s even amongst the low-risk, high-reward stocks available.
So, do your research well and unbiased, you’re up against the big boys in the industry, you don’t want to lose your money.
How To Buy Apple Stock Direct?
The truth is, you cannot purchase Apple stock directly from Apple, but you can do so through any brokerage firm, including online brokerage services.
Here’s how to buy Apple stock direct.
You know you can purchase the AAPL through any brokerage firm, so its important to look for the best brokers that have low commissions, expert ratings and the right investment tools to track your portfolio.
Most importantly, brokers who have access to the NASDAQ exchange. Whether it’s a brokerage firm or an online broker, ensure you choose one that fits you well and trades safely.
#2. Set up your brokerage account
After you have chosen which broker to use, you need to open a brokerage account. It is similar to opening a bank account, and if it’s an online broker, the entire process is online. This saves you the hassle of using regular brokerage firms.
You just need to provide basic bank information and you’re good to go. While some may open the account in minutes, others prefer to do a background check on you first. Unlike your regular bank account, your brokerage account will be used to store your shares. So you really need this to buy the Apple stock direct.
#3. Fund your broker
It’s not enough that you have a brokerage account, you will need to transfer money to your broker for the purchase of the stock.
You can decide to do a bank transfer or give them your credit/debit card. You can also deposit through electronic wallets like PayPal.
#4. Buy Your Stock
Now there’s a brokerage account to store the shares and money to buy the stock, you can go ahead to buy the Apple stock. Don’t just buy recklessly.
Decide on the number of shares you want and contact your broker to do the trade for you. Most platforms will immediately email you a confirmation of your purchase. Remember the Apple stock costs $119.05 USD, so do your maths right.
#5. Monitor your investment
Congratulations, you now own a part of Apple. But, it doesn’t stop there. You have to monitor your investment. This means you have to be sure that you are using the right investment strategy to maximize your investment.
Track how your stock performs, including the business. Know when it’s time to acquire more or the sell-out. As your stock grows, you may earn voting rights on issues that directly affect your stock.
You can see our beginner’s guide on how to buy stocks for extra details and a well-detailed explanation of the processes involved.
The Apple stock is known to have a good market performance. So, it’s justifiable if you want to know how to buy Apple shares direct.
Just follow this guide and you’d be on your way to maximizing your investment.
Remember, it’s a long and gradual process.
I hope this helps you.