In the hunt for yield, Apple stock has become a new contender, AlphaOne Capital Partners CIO Dan Niles said Tuesday on CNBC.
"It's a $400 billion market cap company; they're going to return $100 billion to you. And that's a big change," he said.
"To me, at $400 or so, it looked like a good spot, given we have new products coming out later, given everybody hates it at $400 who loved it at $700. It seemed to me like a good spot, given their capital return strategy, to buy it."
(Read More: Apple Bonds: 'Market Is Going to Be All Over It')
On "Fast Money," Niles noted that his change of heart was because of Apple's new capital allocation policy.
"Don't get me wrong, if they weren't returning this much capital, I wouldn't own it," he said.
"But when you've got a 7 percent return per year coming and the best you can get on U.S. Treasuries is 1.6, and you've got new products, I think it's worth taking a shot."
Trader disclosure: On April 30, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long MINI S&P FUTURES; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long IBM; Joe Terranova is long SPLK; Joe Terranova is long TBT; Joe Terranova is long SWN; Steve Weiss is long QCOM; Steve Weiss is long HIG; Mike Murphy is long AAPL; Mike Murphy is long BAC; Mike Murphy is long INTC; Mike Murphy is long TOL; Josh Brown is long JPM; Josh Brown is long XLU;
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