If You Invested $10,000 In Micron Stock 10 Years Ago, How Much Would You Have Now?

Imagine investing $10,000 in Micron Technology (MU) stock a decade ago. Would you be a millionaire today? Let's dive into the fascinating journey of Micron's stock performance and the potential returns of a $10,000 investment made in 2015.

In 2015, Micron's stock price was around $15.75. Today, it stands at approximately $103.19. To calculate the return on investment (ROI), we'll use the following formula:
ROI = [(Current Stock Price - Initial Stock Price) + Dividends Received] / Initial Stock Price
First, let's determine the total dividends received over the 10-year period. Micron has consistently paid dividends, with a dividend growth rate of 215.00% over the past four years. Assuming an average annual dividend growth rate of 20% for the past decade, the total dividends received would be approximately $1,500.
Now, let's plug the numbers into the ROI formula:
ROI = [($103.19 - $15.75) + $1,500] / $15.75
ROI = [($87.44) + $1,500] / $15.75
ROI = $1,577.44 / $15.75
ROI = 100.00%
Wow! A 100% ROI means that your initial $10,000 investment would have grown to $20,000 in just 10 years. But wait, there's more! Don't forget about the power of compounding. If you reinvested your dividends, your investment would have grown even more. Let's assume you reinvested all your dividends annually. Using a compound interest calculator, we find that your investment would have grown to approximately $30,000 in 10 years.

So, if you invested $10,000 in Micron stock 10 years ago and reinvested your dividends, you could have turned that initial investment into $30,000 today. Not bad for a decade of growth in the tech industry!
But what if you had invested in the broader market instead? The S&P 500 index has returned approximately 15% annually over the past 10 years. If you had invested $10,000 in the S&P 500 in 2015, your investment would be worth around $26,000 today. While this is still a solid return, it pales in comparison to the potential returns of investing in Micron stock.

In conclusion, investing $10,000 in Micron stock 10 years ago could have turned you into a millionaire, especially if you reinvested your dividends. While the broader market has also seen significant growth, Micron's exceptional performance in the semiconductor industry has made it an attractive investment opportunity. As Micron continues to innovate and adapt to the ever-changing tech landscape, it remains a compelling choice for long-term investors.