Many investors dream of churning a modest $1,000 investment into $1 million. But only a handful of companies have achieved those millionaire-making gains since their initial public offerings (IPOs).
Companies that deliver those kinds of returns have resilient brands, wide moats, and the scale to dilute their own costs while fending off their competitors.
So today, let's take a closer look at a trio of millionaire-maker stocks that still have those advantages: Coca-Cola (KO 1.02%), Walmart (WMT 0.10%), and Apple (AAPL -3.40%).
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1. Coca-Cola
Coca-Cola went public at $40 in 1919. After 11 stock splits, a single IPO share would have blossomed into 9,216 shares worth roughly $610,000 today. A $1,000 investment in its IPO would have grown to $15.2 million and would be generating more than $470,000 in annual dividends.
Coca-Cola established an early mover's advantage in the soda market more than a century ago, and it's now the world's largest beverage maker. It only sells concentrates and syrups, while independent bottling partners actually produce and distribute the finished beverages. That capital-light business model enables it to generate stable profits and reliable dividends. That's why it's a Dividend King that has raised dividends annually for 63 consecutive years.
To counter declining soda consumption rates, Coca-Cola expanded its beverage portfolio with more brands of fruit juices, teas, bottled water, sports drinks, energy drinks, and even alcohol. It now sells more than 200 brands of drinks worldwide, and that scale and diversification reduces its concentration risk and strengthens its defenses against other beverage makers. From 2024 to 2027, analysts expect Coca-Cola's earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of 11%. It's still reasonably valued at 21 times next year's earnings, and it should remain a safe evergreen stock to buy in both bull and bear markets.
2. Walmart
Walmart went public at $16.50 per share in 1970. It then split its stock 12 times and turned a single share into 6,144 shares -- which are worth about $620,000 today. A $1,000 investment in its IPO would be worth $37.6 million today and paying nearly $338,500 in dividends each year.
Walmart opened its first discount store in 1962, but it's now the world's largest retailer with more than 10,750 stores and warehouse clubs across 19 countries. Its Sam's Club stores compete against Costco Wholesale in the warehouse club market, and it also operates a broad range of e-commerce websites and smaller regional banners.
Walmart initially scaled up its business by focusing on rural markets that were overlooked by larger retailers. By keeping its distribution centers close to its retail stores, it created a hub-and-spoke model that reduced its logistics expenses. As the company opened more stores, it gained more clout to negotiate lower prices with suppliers to support its "everyday low prices" strategy. It was also one of the first retailers to use computers to track its sales and inventories in real time. It continues to expand its e-commerce ecosystem and use its stores as fulfillment centers for its online orders.
From fiscal 2025 to fiscal 2028 (which ends in January 2028), analysts expect Walmart's EPS to grow at a CAGR of 10%. It might not seem like a bargain at 35 times next year's earnings, but its scale, diversification, and resilient growth should all justify that higher valuation.
3. Apple
Apple went public at $22 in 1980. It subsequently split its stock five times, so a single share in its IPO would have grown to 224 shares worth roughly $57,000 today. A $1,000 investment in its IPO would be worth $2.54 million and paying more than $10,000 in annual dividends.
Apple rose to prominence as a maker of personal computers. But after two disappointing product launches (the Lisa and the Macintosh), its board of directors fired its co-founder and CEO, Steve Jobs, in 1985. Apple continued to struggle for more than a decade before it brought Jobs back as its interim CEO in 1997.
After returning to Apple, Jobs led the company through its launches of the iMac, iPod, iPhone, and iPad, which transformed it from a dusty old computer maker into a creator of sleek forward-thinking devices. Apple didn't invent the MP3 player, smartphone, or tablet computer, but it shrewdly disrupted those markets with its user-friendly devices and sticky software ecosystems.
By the time Jobs died in 2011, Apple had evolved from a tech brand into a luxury brand. Jobs' successor, Tim Cook, stuck to that playbook and continued expanding its lineup of high-end gadgets, nurturing its brand appeal, and locking in its users with stickier services.
From fiscal 2024 to fiscal 2027 (which ends in September 2027), analysts expect Apple's EPS to grow at a CAGR of 13% as it launches new iPhones, expands its services ecosystem, and strengthens the walls of its walled garden with more AI-powered services. It might seem a bit pricey at 32 times next year's earnings, but Apple should continue to expand and evolve with new devices and subscription-based services.
