For the first time in history, the S&P 500 hit the 2,000 level yesterday – a huge milestone for the markets, indeed.
Though the S&P was unable to sustain the 2,000 level, the storied benchmark still managed to close at a record high.
It’s certainly great news, as the market has bounced back quickly following a brief falter in late July and early August. A big boost to the Dow Jones Industrial Average has come from Home Depot (HD), which is up around 13% in August alone.
The home improvement chain posted a solid quarter, announcing earnings and revenue which topped Wall Street forecasts. Its full-year profit outlook was also raised, signaling perceived strength in the housing market.
But HD isn’t the only stock pulling its weight…
The markets can also give thanks to the largest mega cap, too. Apple (AAPL) has reached $100 (split adjusted) for the first time after its seven-for-one stock split in June. Its market capitalization (stock price times shares outstanding) has now topped $600 billion, a truly gargantuan figure.
And now, hedge funds are flocking to Apple. According to The Wall Street Journal, “Hedge funds purchased $855 million in new positions in [Apple] during the second quarter, the second-highest level of new buying activity among S&P 500 stocks.”
That’s great news for the iPad and iPhone maker. And it’s even better news for you if you took heed to our forecast in April. While some may be surprised by Apple’s performance, we called it months ago.
AAPL’s 1.9% dividend yield may not be extraordinarily high, but don’t let that fool you. We said it once, and we’ll say it again, it’s “one of the most attractive mega caps for income investors.” In short, AAPL is a cheap dividend grower.
And now, it appears that the rest of the world is finally catching on…
Income Research Team