In the past five years Apple (NASDAQ: AAPL) Shares are up 277% when adjusted for a 2020 stock split. But it’s also important to note that Apple pays a modest dividend. So if you assume the reinvestment of all the dividends you received over the past five years, Apple’s five-year total return through May 13 was 291%.
So if you had invested $10,000 in Apple stock five years ago and reinvested your dividends along the way, your investment would have grown to about $39,100.
Apple versus the benchmarks
To say the least, this is an extraordinary achievement. A total return of 291% over a five-year period translates into a total return of 31% annually. Meanwhile, the long-term average of the S&P500 amounts to approximately 10%.
If we consider just the past five years, we can see how Apple’s performance compares to major benchmarks.
|
Company/Index |
Total return over 5 years |
|---|---|
|
Apple |
291% |
|
Nasdaq100 |
150% |
|
S&P500 |
97% |
|
Dow Jones Industrial Average |
69% |
Data source: YCharts.
Why has Apple performed so well?
Clearly, many factors have contributed to Apple’s performance over the past five years, including 20 quarterly earnings reports, five holiday sales, numerous new product releases, and much more. In short, there is far too much to cover in a relatively short article.
That said, comparing some of Apple’s key numbers from its most recent earnings release with the same numbers from an earnings report from five years earlier tells us a lot about why Apple has delivered such great performance.
|
Metric |
Fiscal second quarter 2019 |
Fiscal second quarter 2024 |
% Change |
|---|---|---|---|
|
The total turnover |
$58.02 billion |
$90.75 billion |
56.4% |
|
Product revenue |
$46.57 billion |
$66.89 billion |
43.6% |
|
Turnover from services |
$11.45 billion |
$23.87 billion |
108% |
|
Profit per share |
$0.615 |
$1.53 |
149% |
|
Outstanding shares |
18.8 billion |
15.5 billion |
(17.5%) |
Data source: Apple. Statistics per share are adjusted on a split basis. Parentheses indicate negative numbers.
The bottom line is that Apple has had fantastic returns, but there are some good reasons for that: not hype or explosive growth, but excellent business performance that has persisted over time.
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Matt Frankel has no position in any of the stocks mentioned. The Motley Fool holds and recommends positions in Apple. The Motley Fool has a disclosure policy.
If you invested $10,000 in Apple stock five years ago, here’s how much you’d have today. originally published by The Motley Fool
