Apple investors have done well over the past decade, if not several decades. According to Apple’s first-quarter earnings report for 2024, revenue is up 3%, while quarterly earnings per diluted share are up 16% year on year. But what if you invested $1,000 more than a decade ago?
On March 9, 2012, Apple announced plans to reinstate its dividend. The following day, shares traded at around $600 each. According to The Motley Fool, if your broker had allowed fractional share purchases at the time, you could have bought one and two-thirds shares for $1,000. Since then, Apple’s stock has been split twice: 7-for-1 in 2014 and 4-for-1 by 2020. As a result, you’d have 46 and two-thirds shares today from the original $1,000 purchase. Today, those shares would be worth $8,700.
However, if you reinvested your $361.65 in dividend payments over the last 14 years, The Fool estimates you’d now own 55 shares worth around $10,300.
Is it now too late to invest in Apple?
Even if you didn’t invest in Apple in 2012, there’s still time to benefit from the company’s growth.
Although Apple stock has fallen this year due to weak iPhone sales, The Fool speculated that sales could rebound later this year with the release of the iPhone 16. According to Investors Business Daily, two segments have recently boosted Apple’s sales and profits: services and wearables. In December, Apple’s services revenue increased 11% to $23.1 billion, while hardware sales increased to $96.5 billion. Apple’s services include the App Store, AppleCare, iCloud, Apple Pay, Apple Music, Apple TV+, Apple Arcade, and other options.
The company is also cash-rich with little debt. The Fool noted that Apple has a market capitalization of just under $3 trillion and is the world’s most profitable company. In addition to its $97 billion net income from the previous fiscal year, the company has slightly more than $60 billion in cash or highly liquid cash-like holdings on its books. In terms of debt, the company’s long-term debt is less than $100 billion, with other long-term liabilities totaling $49 billion. While this is a significant amount of debt, it is not unreasonable for a company of Apple’s size.
The Fool also noted that the company’s business model is shifting from one focused on devices to one that is culturally and solution-oriented. Apple is expanding its digital ecosystem, which drives hardware and software sales, which may cause a shift in the growth of its services business.
Another reason to consider investing in Apple: it is Apple. There may be short-term declines, but the company has spent decades cultivating one of the world’s most loyal fanbases, and those fans are unlikely to disappear overnight.