Could the most disappointing Apple catalyst of the year soon turn into the most powerful? The Apple dividend has been a non-factor in terms of stock demand since it was initially announced on March 18th but that could soon change. We have researched the holdings of the top dividend funds on Wall Street and have found that Apple is nowhere to be found.
- iShares Dow Jones Select Dividend Index Fund (DVY) 7/25/12 Apple not a holding
- iShares High Dividend Equity Fund (HDV) 7/25/12 Apple not a holding
- Vanguard Dividend Appreciation Fund (MUTF:VDAIX) 6/30/12 Apple not listed as a top 10 holding
- SPDR S&P Dividend ETF (SDY) 7/25/12 Apple not a holding
- T Rowe Price Dividend Growth Fund (MUTF:PRDGX) 6/30/12 Apple not a holding
- Blackrock Equity Dividend Fund (MUTF:MDDVX) 6/30/12 Apple not a top 10 holding
- Wisdom Tree Large Cap Dividend Fund (DLN) 7/25/12 Apple not a holding
With August 13th now the official date of ownership for the Apple dividend it is no surprise to see the stock up over $30 in the past three days. Dividend demand is a catalyst to jump start the fall run early. Many Apple investors were too heavy for the earnings report and then lightened up at the low because of the precedent for an August sell off. We did the opposite. The EconomicTiming.com portfolio reduced risk ahead of the report and then bought the dip because this August is different. Historical precedent is a good indicator for stock action but it must be reconciled with changes to the status quo. Tim Cook's decision to up the release date of iPhone 5 is a minor calendar change that will have major stock action implications. Not only do we have hedge funds trolling for momentum but dividend funds are adding Apple as well.
Disclosure: I am long AAPL.