Three Reasons to Invest in Apple Inc. (AAPL)

Although there are many reasons to invest in the great tech company that is Apple, I have narrowed it down to just three reasons.

1. Simply looking at the fundamentals, Apple is trading at a major discount to its rival "tech-giant" competitors. Although Apple shares have fallen nearly 30% in the last year, the company is still extremely profitable and trades at just 10 times earnings. This is far less expensive than the technology industry average of 16 times earnings. In this bull market, value is hard to find, but not if you choose to invest in Apple.
2. Additionally, Apple is still projected to grow at an average of 21% for each of the next five years, while the technology industry is only projected to grow at an average of 11%. The PEG ratio (PE/Growth) is useful in this situation to display Apple's value. Apple trades at a lower PE ratio and grows at a higher rate than the tech industry, therefore Apple's PEG ratio is .52. The PEG ratio for the tech industry is 1.34, which means that you are paying more for less growth, if you look past Apple.  
3. Finally, Apple is one of the largest companies in the world, and now has $146 billion in cash! This money is just sitting there waiting to be returned to shareholders in the form of share buy-backs and increased dividend payouts. Apple currently yields 2.91% which is very impressive for a tech company. Consider that Google, Microsoft, IBM, and Oracle all fall short of a dividend that pays this much. Apple has announced plans to buy back shares which is good for two reasons. Apple believes that their shares are undervalued at these prices and will attempt to profit by selling them later. Also, by reducing the number of shares available to the public, the value of each one increases.

Thank you for reading, now carefully consider these facts and your investment objectives before investing

(Facts according to Yahoo!Finance)

3 Reasons That I Am Buying UnitedHealth Group Inc. (UNH)

UnitedHealth Group is a diversified health services company that is very attractive in these current economic conditions for 3 reasons.

1. On a valuation basis, UNH currently trades at 14 times earnings, or a 14 P/E multiple. Additionally, UNH is trading just over 12 times next years earnings, a better value than the S&P 500.
2. Not only is UNH undervalued, but it's share price has still been increasing at an average of 40% each year for the last 5 years. This year, it is already up 30 %.
3. Finally, with the Affordable Care Act looming over the horizon, more citizens will be able to receive health benefits. Currently there is an estimated 44 million Americans that cannot afford health care. However, UnitedHealth is positioned to acquire a good amount of these citizens' business once the act is put into practice.

3 Reasons to Invest in Dividend-Paying Companies

      The value of investing in dividend paying companies is often overlooked in today's market. Investors are seeking growth, but yet they forget that dividend paying companies can be just what they need.
      First of all, investors know that a dividend payout is a return to shareholders that is issued quarterly, semi-annually, or annually. This extra cash is a delight to investors, as it is essentially a "thank-you" for being a loyal shareholder. However, this cash can and should be used to purchase more shares of the same company, if you believe in it. In turn, this will lead to more cash in your pocket when future dividends arrive. For information on why you should reinvest your dividends, see my other entry "Why Should I Reinvest My Dividends?"
       Secondly, a dividend can help boost your returns when the stock price is appreciating, but also mitigate your losses when the market goes down. For example, if a stock prices rises from $100 to $110 in one year, it increased 10%. However, if you include your 3% payout, you have an adjusted 13% return. If the price decreases 10% in a year, your dividend reduces that loss to 7%.
        Finally, and most importantly, a dividend is proof that a company is prosperous financially. These companies have enough capital to continue growing, and make shareholders happy. Also, the companies that are able to consistently raise their dividend payout each year, have been some of the best performing stocks in the last century. There is a select group known as the "Dividend Aristocrats" which are the companies that have raised there dividend payout for 25 consecutive years. I advise you to search for the members of this group, and seriously consider investing in them if you wish to build life-long wealth.