The Ukrainian securities broker BTS Broker launched the first block of shares of a large foreign company Apple on the Ukrainian market. This means that very soon the Ukrainians will have the opportunity to become co-owners of the world’s largest corporation and receive dividends from its activities along with the rest of the shareholders.
Mindaugas Bakas, Chairman of the Board of the National Depositary of Ukraine, reports that the broker is now receiving permission from the National Commission for Securities to allow Apple to issue securities on the Ukrainian stock market.
Now the question arises, what are the benefits of investing in Apple shares and what is necessary for potential investors to know.
Apple stock price and performance
The initial placement of securities of the corporation was carried out in 1980. According to analysts, the Apple IPO is one of the most successful placements in the history of the US stock market.
Shares of this American corporation are traded on the NASDAQ, where they have been given the AAPL ticker, as well as on several major European exchanges.
The company’s shares are included in the category of so-called “blue chips” and are included in the calculation base of many stock indexes.
Now the cost of one Apple share on the American NASDAQ Exchange is $ 174.3. However, it is worth considering the commission, which in the case of the Ukrainian broker will be much higher than on the American or European stock exchanges.
When to buy shares
Here, everything will depend on your goals and the expected result from investing. If you focus on longterm investment, then there is no reason to postpone the day of purchase. Apple shares will grow, as the corporation not only develops its main direction, but also annually invests billions in new start-ups and technologies, and in 5-10 years, you can significantly increase your initial contribution.
If you want to buy Apple stock for a short time, then the best moment to buy will be on the eve of a new product release or before dividend payments. As a rule, after the start of sales of the new iPhone or MacBook, the shares are rightly growing, because the company takes a huge influx of revenue. In addition, a positive factor will be successful financial reports, the state, and most importantly the growth of production.
All these data are absolutely public and are published on the official website in the Investor Relations section: //investor.apple.com/investor-relations/default.aspx
Before buying stocks for a short time, it is worth reading the latest company news, analysts’ opinions for the near future, finding out the release dates of new products and other news that may affect the stock price.
Company dividend policy
Apple makes dividend payments quarterly, usually around the 20-27th of the last month of each quarter.
To receive dividends, an investor must purchase stock in a company at least one day before the date of payment. Dividends are a very nice bonus to exchange rate differences, which the investor often focuses on.
However, as a percentage of the share price, the dividend history of Apple (like most US companies) remains modest. Usually this indicator does not exceed 2%. This is due to the high cost of the shares themselves, from which the percentage of profit is calculated. Their rate is growing steadily every year, so it’s more profitable for an investor to make money on exchange differences.
IMPORTANT: If you do not buy, but sell Apple shares (open a short position), then on the day of the dividend payment, the amount equivalent to the amount of dividends will be written off your balance. Therefore, either it is necessary to liquidate the position in advance, or open a deal after the cut-off date.
Positive and negative aspects of investing in Apple
For the Ukrainian investor, there are several positive points when buying shares of a corporation:
- Apple is a large and stable company that does not give its investors reasons for concerns regarding its financial position and sustainability.
- Progressive, but steady growth in stock prices in the long term.
- Ability to receive additional income in the form of dividends 4 times a year.
- Resistance to hryvnia inflation and the unstable economic situation in Ukraine.
However, despite all the above advantages, the Ukrainian investor should also evaluate alternative options for investing. After all, dividend income is very low, and it is not always possible to predict the dynamics of the stock price. Therefore, under unfavourable market conditions, investing in a deposit in a Ukrainian bank may be more profitable.
Of course, no one has cancelled the rule of diversification of the investment portfolio, so with proper investment planning you will be able to earn a steady income on various financial instruments.