In billions of dollars. S&P 500 totals include Apple. Source: Bloomberg via Oracle Investment Research. Click to enlarge.
FORTUNE — A few weeks ago I got an e-mail from Laurence Balter, chief market strategist for Oracle Investment Research, chastising me for not crediting him with the downgrade — issued in late August — that helped lop more than $400 billion off Apple’s (AAPL) market value.
I promised to keep a closer eye on his calls if he would add me to his mailing list.
He did. I have. And early Friday he issued a note titled “A ‘jumbo jet’ dividend ready for takeoff” that included the graph above. Apple, he estimates, could afford to pay more than 5% of the S&P 500 dividends yet currently pays considerably less.
Balter has turned around on Apple since last summer, having called a bottom at $439 in a Dec. 5 Bloomberg TV appearance. His Friday note reiterates his “strong buy” on the company and anticipates a big dividend bump.
“Buckle your seat belts,” he writes.
NOTE: This is the third version Balter’s Friday chart. The first two were more dramatic, but way off base.
