Analyst: 3 Steps to an Apple Stock Recovery

“We believe creating a safety net around Apple’s (NASDAQ:AAPL) stock with a larger cash distribution is the first phase necessary to stabilize Apple’s stock price,” wrote Brian White, an analyst at Topeka Capital Markets, in a note on Tuesday. The next two phases are “a trough in the profit cycle and the ability to open up new, large market opportunities.”

Given that Tuesday is the one-year anniversary of Apple’s reinstated dividend, “cash is clearly on investors’ minds this week,” wrote the analyst. Apple closed Monday up 2.72 percent, and edged up an additional 0.3 percent in early trading on Tuesday as shareholders — unwilling to show patience in the wake of 24 percent year-over-year losses — bid the stock up in anticipation of an increased dividend.

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Surfing this wave of market consensus, the analyst suggests that the payout yield could climb anywhere from 3.3 to 4.4 percent, or between $3.75 and $5.00 per share per quarter. A move along these lines would satisfy phase one of the three-point trajectory. Phase two of the Apple stock recovery is hitting a bottom…

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