At lot is made about the fact that Steve Jobs in gone. Those who choose to invest in Apple for the dividend may well believe that the creative spark in Apple died with its cofounder. However, the co-founder and former CEO of Apple was not the only creative mind in the company. Apple will likely continue to produce great products that everyone wants to have. However, there is such a thing as market saturation. Apple makes great products. But, for much of the world, if not most of the world, they are too expensive. And, competition could get tougher for Apple if it gets into the world of mid-priced consumer electronics. The implication of this line of reasoning is that Apple may well continue to wow us with new and innovative products. It may well continue to create a healthy income stream. It may be able to pay healthy dividends and even raise its stock price a bit by repurchasing its stock. But the time to invest in Apple for the dividend, instead of for expected growth, might well have come. When investing in companies with cash, investors look for stability and cash flow more so than growth.

One issue for the immediate term is that Apple stock has gone up by half since Steve Jobs passed away. Part of this has likely had to do with successful product launches. Part may have had to do with previous concern about a transition after the expect death of the former CEO. With a successful transition investors may well be reassured that the company will not just fall apart. But, even with its upcoming dividend and stock buyback plan, Apple will hold over $50 Billion in cash and cash equivalents and will be adding on as it goes. It holds substantial offshore assets as well and will likely not repatriate these unless there is a change in the tax law. Whether you choose to invest in Apple for its product innovation or invest in Apple for the dividend depends on whether you think that the company will come up with a product or two than no one currently imagines, which everyone will want to have, and which lots of folks will be able to afford. Fundamental analysis will need to support positive investor sentiment if investors are going keep driving Apple stocks price upward.

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