Last week, Apple (NYSE: AAPL) reported its first quarter earnings beating expectations on all ends, causing its share price to surge over 3% after the report. Earnings totaled $3.36 per share, compared to analysts’ view of $3.21. Revenue came in at $78.4 billion, above analysts’ estimate of $77.25 billion. What is even more impressive about Apple is that it continues to beat its own records with the iPhone.

Written by DividendMGR

iPhone Sales UP

When a new iPhone is released, consumers have remained loyal and enthusiastic about the new features. Apple sold 78 million of the iPhone 7 since its release in September. That compares to 76 million that analysts expected and up 5% from the same period, a year ago. The continued growth is partially fueled by high demand for the larger models (the iPhone 7 Plus). In addition, Apple reported that it saw its best quarter ever for its iWatch.

It is also notable to mention that this year, the iPhone officially turns ten years old. Back in 2007, many consumers were skeptical (and excited, too) about the unknown technology. Today, the iPhone, as well as its competitors, have become a part of our everyday society. It is expected [that] by 2020, 70% of the world’s population will own a smartphone [but, as observed in an article posted on my personal blog], Apple Inc. (NASDAQ:AAPL) Is Losing Ground To Chinese Smartphone Markets

Apple’s Dividend UP

As for its dividend, Apple has a yield of approximately 1.75%. While this may not be too exciting for dividend investors, the company only recently started paying a dividend again. Apple halted its dividend payout in 1995 when it ran into financial trouble. It is typical of young technology companies to invest in innovation rather than pay shareholders dividends. During this financial crisis, Apple actually had to be rescued by Microsoft (NYSE: MSFT) when it was low on cash.

Ironically, Apple is the most cash-healthy company today. The company has a cash hoard of $246 billion (yes, billion). That’s more than enough extra cash to buy both Intel (NASDAQ: INTC) and Tesla (NASDAQ: TSLA) outright at their current market values. The majority of this cash is currently overseas, but Apple’s CEO, Tim Cook, expressed optimism about the tax reform under the Trump administration.