If you’re a newbie investor, a retiree, or a seasoned investor who’s also a fan of Apple products, you may want to know “how can you invest in Apple.”
Apple is a tech giant that every household has heard of. Their respective categories have transformed due to the iPhone, iPad, AirPods, and Apple Watch. In addition, the company’s simply designed and innovative products have become sought after by global consumers.
Apple’s products have become so integrated into people’s lives that many find it impossible to live without them. They are considered the height of luxury in the tech sector.
However, owning Apple products is not enough, with investors wanting to buy Apple stock. But how can you invest in Apple?
Read further if you’re new to investing and want a slice of Apple’s shares.
It’s important to remember that before investing in Apple or any other stocks or investments, you must do your research to ensure they align with your investment goals.
How to Buy Apple Stock
There are three main ways for investors to buy Apple stock, namely:
- Through a regulated brokerage
- Through a financial advisor
- Through an EFT
Let’s consider each option individually.
Option 1: Brokerage Account
The cheapest and quickest way to buy Apple stock or any other stock is through a brokerage account. Online brokerage accounts can be accessed via a laptop, desktop computer, or mobile app and can be opened in approximately 15 minutes, similar to a checking account.
Finding a broker who sells Apple stock is easier than you might think. However, you must also consider the variety of other products the broker offers, such as exchange-traded funds (ETFs) and mutual funds, to help you diversify your portfolio.
Additionally, keep an eye out for low-cost or free brokers, top-notch customer service, and tools and resources to help you in your investing journey.
Once you’ve completed the steps and opened your brokerage account, you need to fund your account. A budget will be handy as you don’t want to risk more than you can afford. If you can’t afford to buy Apple stock, you may want to consider buying fractional shares.
A fractional share is if you buy less than an entire stock and only buy a portion. Think of one Apple stock as a pie with many slices, and you can only afford to buy two slices. The two slices that you end up buying are fractional shares.
Stock splits, which don’t always result in an even number of shares, often produce fractional shares. When two companies merge or are acquired, new common stock is combined under a predetermined ratio, resulting in fractional shares.
Option 2: Financial Advisor
Consider using a financial advisor if you’re looking for an alternative solution and want to buy Apple stock without a broker. Financial advisors are ideal if you are new to investing or are looking for professional guidance in growing your portfolio with various investment types. They can also provide a comprehensive strategy for improving your financial position.
However, their services may be more expensive than a brokerage.
So, how can you invest in Apple with a financial broker?
Firstly, you must ensure the financial advisor is legit and not a scam. There are several websites that can assist with this information:
Once you’ve vetted your financial advisor, set up an appointment with them to discuss your investment strategy, your financial goals, and that you need assistance buying Apple stock.
Now that you’re ready to invest in Apple with a financial advisor consider these two tips to ensure you find the best investment advice according to your needs:
- If you’re looking for a financial advisor in your area, you can search the database of regulated advisors. Once you’ve narrowed down a few options, research them and see what others say about them by reading online reviews. You can also request to interview a few financial advisors to help you choose the right one for you.
- Financial advisors can help you with your financial goals, which include short-and long-term investment goals. When searching for a financial advisor to buy Apple stock, write down a few questions you would like to know about when it comes to saving strategies, investment advice, or anything important to you. This will help guide you before making a final decision.
Option 3: Index Fund/ETF
Individual stocks aren’t the only way you can invest in Apple. Index funds or ETFs can be bought through your online brokerage or financial advisor. These investment funds are typically seen as less risky than individual stocks while still providing excellent long-term returns because they own hundreds or thousands of different stocks.
An affordable approach to obtain exposure to Apple and other tech companies is through index funds or ETFs. By avoiding exposure to just one security or too many in that sector, investors can reduce some risks this way.
Furthermore, even as you diversify the rest of your portfolio, you’ll still have substantial exposure to Apple because the company makes up a significant percentage of many popular index funds.
When it comes to hedging against inflation, investors have a wide range of ETF options. Index funds based on the Standard & Poor’s 500 index (S&P 500 index fund) and the Nasdaq 100 index, which include the top companies listed on American exchanges, are two of the most popular ETFs.
How Much is Apple Stock Worth?
On December 12, 1980, Apple had its initial public offering (IPO) under the ticker symbol NASDAQ: AAPL. Stocks had a $22 initial price. Today, as of January 3, 2023, Apple stock is trading at $124.73.
Why Invest in Apple?
Now that you know how you can invest in Apple, you may want to know if it’s worth the investment. Apple is the world’s most valuable company as of January 3, 2023, with a market cap of $2.066 trillion.
Apple stock has grown since its inception due to its launch of successful products, including the Apple iPhone, Apple Watch, Mac computer, iPod and iTunes, Apple TV, etc. These waves of creative products have been the driving force behind Apple’s dramatic expansion. Even more impressive is how Apple’s stock has increased in value over the past ten years, making it the first company to have a market capitalization of one trillion dollars, making them the most valuable brand in the world.
Apple Retail Stores
In addition to Apple’s innovative products, the Apple stores contribute to the company’s success. It was the first retailer to sell more than $1 billion of products annually and is currently in hundreds of locations worldwide. The biggest number of these stores can be found in Apple’s home market of the US, where 54 are exclusively located in California.
Global Smartphone Market Share
In the second quarter of 2022, Apple’s iOS mobile operating system had around 15,6% of the global smartphone market share, a decrease from the first quarter. This is consistent with Apple’s current distribution approach, which has seen the company capture a significant portion of the market in the fourth quarter and ship products at a slower pace for the remainder of the year.
Record Sales Growth
The total net sales of Apple increased from the previous record of $274.52 billion in the fiscal year 2020 to $394.33 billion in the fiscal year 2022. The previous ten years have seen a quadrupling of Apple’s annual revenue.
Before you buy Apple stock, make sure you do enough research on the company. Read through their financials and stock price history, and consider their past, present, and future product releases to ensure they fit your investment style.
Apple Stock Dividends
Apple is a popular stock to own, not only for its fans but also because it’s a dividend stock. The company has been paying dividends quarterly since 1987, with the only interruptions occurring when there was a stock split.
As of December 30, 2022, Apple’s dividend yield is at 0.71%, with the current TTM (trailing twelve months) dividend payout at $0.92. Apple is renowned for raising its dividend payments each year, which shouldn’t be an issue given its impressive profitability.
Now that you know everything you need to know about how to invest in Apple, it’s time to start doing your own independent research on the company and use risk management before making a final decision.
Whether you buy Apple stock through an online brokerage, a financial advisor, or through ETFs or index funds, choose the one that suits you best, and remember to stick to your budget and not spend more than you can afford.