Apple Is the Best-Performing "Magnificent Seven" Stock This Year. But It Has Still Lagged This Unassuming Dividend Stock (That Remains a Top Buy Now).
2026-09-28 12:07
•Rick Munarriz •The Motley Fool
•••••• •• Axe Cap view
Apple Leads Tech, But Dividend Champs Catch the Eye
Apple’s stellar run in 2026 hasn’t stopped some dividend stocks from outperforming it by a mile.
Apple’s 25% gain this year confirms its tech dominance, fueled by strong iPhone sales and rare back-to-back double-digit revenue growth. Yet, US retailer Target’s 61% jump under a new CEO signals something different: a classic turnaround story with steady income. Target’s modest 15 times forward earnings and nearly 3% dividend yield highlight the value premium and income stability that growth stocks like Apple often lack. South African investors might look at this through the USD/ZAR lens—steady dividend payers abroad can help hedge rand volatility. Locally, big retailers such as Shoprite or Woolworths don’t offer that blend of turnaround and consistent dividends, making foreign dividend stocks worth watching. Apple’s growth has its risks—any hiccups in product innovation or supply chains could slow momentum. But if stable income with growth potential appeals, the rally in turnaround dividend stocks deserves attention. this is just our opinion and not financial advice
Buy select global dividend stocks showing clear recovery and stable payouts, while trimming high-flying tech exposure like Apple to lock in gains. Use USD/ZAR as a guide to timing offshore moves.
- AAPL
- USD/ZAR
- Shoprite
- Apple innovation falters
- Rand volatility spikes
6/10
While Apple has been the top performer among the Magnificent Seven stocks with a 25% year-to-date gain, Target has significantly outperformed with a 61% increase in 2026. Under new CEO Michael Fiddelke's turnaround plan, Target has reversed years of decline with positive sales growth and earnings revisions. Despite its strong performance, Target remains attractively valued at 15x forward earnings with a 2.95% dividend yield and a 55-year streak of consecutive dividend increases.
Our take is based on reporting first published by The Motley Fool.