If you go back to last year, Apple continued to sell iphones in large numbers, had $250 billion in offshore accounts and paid a 36% corporate tax. Thanks to the tax cut, Apple continues to sell large numbers has brought or is being to bring its billions offshore back to the US and pays a lower corporate tax. Even if it did nothing better than last year, it would have beaten estimates. With the money, what did Apple do – it bought back $23.5 billion of stock back, increased its dividends and there is more to come. With less shares each remaining share is more valuable and with increased dividends shareholders receive greater cash for their holdings. There is nothing not to like, except for the big picture in the US.

In dealing with Apple, in an article by Stephen Nellis of Reuters, Apple sold 52.2 million iPhones which is along with Wall Street expectations but no longer the great numbers of the last couple of years. Apple spent money on buybacks and still has $145 million in the bank to do more. The revenue for Apple was 61.1 billion up from 52.9 billion of last year.The average selling price of an iPhone was $728 compared to Wall Street expectations of $748. Selling the iPhone X and iPhone 8 at a discount was the reason.

People continue to buy music as Apple Music, the App Store and iCloud posted 9.1 billion in revenues compared with expectations of $8.3 billion.

For the next couple of years as Apple continues to do what it was doing plus distribution of cash to shareholders, Apple will be considered to be a core stock holding. Maybe not a growth stock, but things can change.

Linking to dividend paying stocks, the tax cut the President gave to corporations has increased stock buybacks and dividend payments and as dividend buyers that is good thing for the companies. In a couple of years, they will have to do the really work of beating the competition instead of relying on the tax cuts, but for not it is a good thing.

There are more questions than answers, till the next time – to raising questions.