Rethinking Apple: Growth Stock, Value Play—Or Both?

AS FEATURED ON WALL STREET JOURNAL

Many people still think of Apple as an exciting "growth" stock, promising hockey-stick returns. They're wrong. These days the company is better viewed as a so-called value stock—a slightly dull one that should be owned for the cash flow and dividends it generates, much like, say, a Johnson & Johnson.

Patrick McDowell, a portfolio manager at Arbor Wealth Management, which is based in Miramar Beach, Fla., and has $55 million under management, says the firm began buying Apple stock this week as a value investment for some clients based on the income. "When you look at the fundamentals of Apple, we see it as an incredible value buy," he says.