Posted: 5/1/2013 11:52:29 AM EDT
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I'm by no means a bond expert, but why would anyone buy Apple bonds (or any bond) right now?
My understanding from the article I just read, is that Apple is borrowing the money to provide a dividend to shareholders without the tax liability of repatriating overseas funds. So if they are borrowing money from one group of investors (bondholders) to give it to another group (shareholders), why be the lender if you want to invest in Apple? Also, I don't think bonds make any sense in the current low interest rate environment. |
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Quoted:
now is a terrible time to buy bonds... equity is where its at Agreed. I don't know all the details surrounding the Apple bonds, but now is a good time to buy the stock. They're trading at just 10.5 times earnings, with an EPS of over $40. And they're paying a 2.7% dividend on top of that. |