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TheStreet Open House

Apple Dividends Crush Facebook and Amazon, as Do 4 Others

Stocks in this article: AMZNFBGOOGAAPLINTCIBMCSCOMSFT

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), 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.

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