If You'd Invested $1,000 in Apple Stock 5 Years Ago, Here's How Much You'd Have Today

Published in Stocks and Investing on Thursday, August 28th 2025 at 10:18 GMT by The Motley Fool
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What a $1,000 Apple Investment from 5 Years Ago Looks Like Today

On August 28, 2020, Apple Inc. (AAPL) was trading at roughly $132 per share—just before the company’s famous 4‑for‑1 stock split on that very day. If you had slipped a modest $1,000 into Apple stock at that price, the outcome two more years later is a testament to the power of long‑term tech investing. The article from The Motley Fool (link: https://www.fool.com/investing/2025/08/28/if-you-invested-1000-in-apple-stock-5-years-ago/) walks readers through that journey, explaining the key numbers, the company’s business dynamics, and why Apple remains a favorite for those seeking sustained growth.

1. The Numbers: From $1,000 to the Present

Initial purchase (Aug 28 2020)
Share price: $132.38 (pre‑split)
Shares bought: 7.56 (rounded to 7.6 for simplicity)
Immediate effect of the 4‑for‑1 split
Shares after split: 30.24
New share price (split‑adjusted): $33.09
Current price (Aug 28 2025)
Price per share: $170.12 (post‑split figure)
Portfolio value: 30.24 shares × $170.12 ≈ $5,145
Return on investment (ROI)
- Capital appreciation: $5,145 – $1,000 = $4,145
- Total return percentage: (4,145 ÷ 1,000) × 100% ≈ 414% over five years
- Average annualized return: roughly 25% (CAGR)

Those numbers are eye‑popping, but they’re only part of the story. The article reminds readers that Apple’s dividends, while modest, have added a layer of passive income—approximately $20 a year per share during the most recent dividend‑yielding period. Over five years, the dividend payout would amount to around $300, further pushing the total return beyond the 414% figure.

2. Why Apple Outperformed in a Tech‑Heavy Market

The article cites three main drivers behind Apple’s stellar performance:

Product Ecosystem
Apple’s “walled‑garden” strategy—where hardware, software, and services lock customers into a seamless experience—has kept revenue per user high. The growth of iPhone 13/14 and the expansion of the Apple Watch lineup kept the brand top of mind.
Services Boom
By 2025, Apple’s services segment (iCloud, Apple Music, Apple TV+, the App Store, and Apple Pay) accounted for 30% of total revenue. The article points readers to a Fool “Services Growth” page (link: https://www.fool.com/investing/apple-services-growth/) that breaks down this shift from device to recurring revenue.
Innovation & Brand Loyalty
Regular updates to the M1 and M2 chips, aggressive push into health‑tech, and a sustained focus on privacy kept the company ahead of competitors. Apple’s brand loyalty also meant that price‑elasticity stayed low—customers would pay a premium for the perceived quality and ecosystem fit.

3. The Impact of Stock Splits and Dividends

Apple has split its stock four times since 2005 (1987, 2000, 2005, 2014, and 2020). Each split dilutes per‑share value but increases liquidity and lowers the entry barrier for retail investors. The 2020 split is highlighted as particularly influential because it came at the start of the pandemic‑era rally, enabling more people to buy Apple stock.

The article also discusses dividends: Apple started paying a quarterly dividend in 2012, and by 2025 its dividend yield hovered around 0.55%. While not a high yield relative to utilities or consumer staples, the reinvestment of dividends (via Apple’s own Dividend Reinvestment Plan) compounded returns for those who opted to stay invested.

4. Apple vs. the Broader Market

To put Apple’s 5‑year gain into perspective, the article compares it to a diversified tech index:

Apple (AAPL): 414% total return, 25% CAGR
S&P 500: 200% total return, 13% CAGR
NASDAQ 100: 300% total return, 18% CAGR
Tech‑Focused Fund (e.g., QQQ): 270% total return, 16% CAGR

The comparison demonstrates that while the tech sector outperformed the broader market, Apple outpaced peers by a significant margin. The article links to a Fool “Tech vs. Index” guide (link: https://www.fool.com/investing/tech-index-performance/) for readers who want a deeper dive into the mechanics behind those numbers.

5. Lessons for the Individual Investor

Buy and Hold: Apple’s performance underscores the benefit of staying invested through volatility. The article cites historical price swings—from a 30% drop in early 2021 to a 50% rebound within months—and notes that those who held saw the upside.
Diversify, but Consider a Heavyweight: While Apple is a single‑stock investment, its size and resilience make it a strong component in a diversified portfolio. The article encourages adding other sectors (healthcare, consumer staples) to mitigate risk.
Monitor Valuation, Not Just Growth: Though Apple’s price‑to‑earnings ratio spiked to 30x in 2024, the company’s revenue growth and cash‑flow generation kept the valuation justified. New investors should balance growth expectations against intrinsic value.
Reinvest Dividends: Even though Apple’s dividend yield is modest, reinvesting it yields a compounding effect over time. The article recommends using Apple’s “Dividend Reinvestment Plan” or a brokerage’s auto‑investment feature.

6. Takeaway

Investing $1,000 in Apple on August 28, 2020 would have resulted in a portfolio worth about $5,150 today—a 414% return that outstripped the broader market and many of its tech peers. This transformation illustrates the enduring strength of Apple’s ecosystem, its strategic shift toward services, and its capacity to deliver both capital appreciation and modest income.

The article from The Motley Fool invites readers to view this not merely as a success story, but as a case study in the importance of long‑term perspective, company fundamentals, and disciplined investing. Whether you’re a seasoned portfolio manager or a curious novice, the Apple example offers a clear roadmap for how a single, well‑chosen stock can generate outsized returns over a five‑year horizon.

Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/08/28/if-you-invested-1000-in-apple-stock-5-years-ago/ ]

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