This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple Dividends Crush Facebook and Amazon, as Do 4 Others

NEW YORK (TheStreet) -- With Wall Street's quarter-to-quarter obsession with growth, investors have seemingly fallen out of love with anything that lacks momentum.

But with 2014's first-quarter earnings season approaching an end, I've become aware that that revenue growth alone is no longer the driving force it use to be. The post-earnings declines seen in names like Amazon (AMZN), Facebook (FB) and Google (GOOG) serves as a perfect example.

Walls Street's growth obsession is beginning to shift towards a value bias. To that end, I've come up with five stocks that should outperform the market for the next five years. It is by then, I believe, that this sudden shift will become be a full-blown embrace.

The first name on the list is Apple (AAPL - Get Report), which I've told you since it traded at $400 was the biggest no-brainer on the market. Apple stock has soared more than 15% over the past week, following the company's strong earnings and revenue beat.

Aside from having sold 43 million iPhones in its second-quarter (versus estimates of 38 million), Apple is becoming more shareholder-friendly. The company added $30 billion to its stock-buyback plan, raised its dividend about 8% and declared a 7-for-1 stock split.

All told, the company will return $130 billion to shareholders. Add the possibility of new product launches this year, whether iWatch or iTV, Apple is back on the path, which it embarked upon with the original iPod more than a decade ago.

There are investors who are still kicking themselves for having missed Apple's first run. But with the stock still closing Thursday at $591.19, which is still 16% below its all-time high, I wouldn't wait to get in now.

Assuming Apple can recapture that same magic in wearables and TV's, there potential for $10 billion in additional revenues starting next year. And that's being conservative. My 5-year price target sits at an even $1,000, or a split-adjusted price of $142.85.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
CSCO $27.49 0.00%
IBM $145.94 0.00%
INTC $30.28 0.00%
MSFT $49.87 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs