From Nasdaq:

Many investors see dividend stocks as an indicator that a company’s growth is slowing, but sometimes it’s the opposite. When companies start paying dividends, it’s a sign that they have confidence in their future earnings growth. For example, Apple has been paying dividends since 2012 and has seen significant stock appreciation and revenue growth.

Apple’s business model has largely remained the same over the past 12 years, with iPhone sales remaining the cornerstone of its revenue. However, the company has seen a tenfold increase in its services business revenue, driven by the App Store, subscription services, and a lucrative search engine deal with Google.

An investment of $1,000 in Apple stock in 2012, when the company reinitiated its dividend, would be worth about $8,700 today. Reinvesting the dividends would bring the value to approximately $10,300, significantly outperforming the S&P 500 index fund.

Apple continues to generate significant cash flow and is still sitting on a net cash position of around $65 billion. The company is poised to return to revenue growth and has ambitious plans for new AI features and product launches, including the Apple Vision Pro headset.

Apple’s stock performance is proof that companies can continue to deliver market-beating results after initiating a dividend. Investors looking to replicate Apple’s success in 2012 might consider taking a closer look at Meta Platforms, which recently initiated a dividend alongside its fourth-quarter earnings release.

The Motley Fool analyst team has identified 10 stocks they believe are the best for investors to buy now, none of which are Apple. However, Stock Advisor subscribers receive guidance on building a portfolio and two new stock picks each month.

Randi Zuckerberg, a former Facebook director and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is also a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet, Apple, and Meta Platforms. The Motley Fool has a disclosure policy.



Read more: If You Invested $1,000 in Apple When It First Reinitiated Its Dividend, This Is How Much You’d Have Now