5 Reasons You Should Add Apple Stock to Your Retirement Portfolio
Written by
Jordan Rosenfeld
Edited by
Levi Leidy
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Retirement portfolios should always include a mix of large-cap stocks (those that are higher value) — often companies with time-tested brands and history — and smaller-cap stocks, which might vary in price.
When it comes to large-cap stocks, look no further than Apple, the electronics leader valued at $3.35 trillion. That’s right — the tech company is worth more than the United Kingdom’s GDP.
Depending on the week, it seems like Apple stock (AAPL) is either trending madly upward or experiencing a worrisome drop as it battles rival companies in China, with investing experts shrieking to “buy, buy, buy” or hold off altogether. For example, in June, Apple secured better profit results than expected, bumping the stock value. However, not long after that, the Oracle of Omaha himself (aka Warren Buffett) shared that Berkshire Hathaway had dumped a significant amount of the stock, which worried investors. It turns out Buffett was just worried about capital gains taxes increasing and wanted to keep his gains and losses in balance.
Regardless of its ups and downs, even on its worst days, it’s unlikely that Apple will ever lose enough value to become a bad investment. Here are just a few reasons why you should probably include Apple stock in your retirement portfolio.
AI Could Drive Significant iPhone Sales
If Apple’s solid historical performance isn’t reason enough to invest in the company, now might be a great time before prices rise again. Some analysts are suggesting that iPhone’s new AI integrations might encourage consumers to upgrade to the iPhone16 in the fall, boosting sales and potential stock price.
Furthermore, Daniel Ives, an analyst for Wedbush Securities, told Investors Business Daily that as many as 270 million iPhones are overdue for an upgrade.
A Reliable History of Innovation
Furthermore, while Apple makes its revenue on a steady stream of tried-and-true products people have come to know and love, it’s also constantly innovating. Who remembers the iPod, after all, which revolutionized digital music? And the iPad was among the first tablets to bring streaming entertainment to screens smaller than laptops but bigger than phones. Now that the company is working AI algorithms into more of its programming, everything from iPhones to Apple Watches to MacBooks will stay on the cutting edge of tech evolution, if not outright drive it.
It Produces Award-Winning Original Entertainment
Apple hasn’t stopped at just making technology — once it got a foothold in the streaming entertainment business through Apple TV, it’s gone on to make some incredible, innovative and award-winning unique programming that can’t be found on other platforms. This year alone, Apple TV-produced shows have garnered over 72 Emmy nominations, including limited series like “Lessons in Chemistry” and the ongoing “Slow Horses.”
It Has Solid Customer Service
Moreover, Apple is known for great customer service via its fishbowl Apple stores, which are equal parts showrooms and IT service centers. This helps to build consumer confidence and keeps Apple at the top of the tech food chain.
It Recently Revealed a Significant Stock Buyback
Perhaps in response to slower phone sales, this year Apple also revealed a stock buyback program that is the biggest in company history, buying back $110 billion of stock. This sent its stock price up by 6%, due to trading.
There are more reasons than not to keep Apple in your portfolio. Whether its on an upward trend or a downward one now, by the time you retire, you’re likely to reap the benefits of its continued growth.
More From GOBankingRates
