12 Best Performing S&P 500 Stocks in the Last 5 Years

We’re coming off a volatile year for the stock market, including bear market dips that have certainly tested investors’ mettle. But when looking for the best stocks to buy right now, investors should still consider long-term performance, not short-term volatility. To help with that, we’ve compiled a list of the best stocks in the S&P 500, measured by year-to-date return. Not surprisingly, that popularity, along with the company’s distribution and marketing reach, made the stock the best on the market over the past 50 years when including reinvested dividends. A dollar invested in Altria in 1968 turned into $6,638 by 2015 with dividends reinvested, good for a 663,700% total return, or 20.6% annually. But more than any other endeavor, shareholders can credit Samsung’s success in mobile devices for cracking this list of the best stocks of the past three decades.

AT&T Corp. shares served widows, orphans and many others admirably for generations. Then known as the American Telephone and Telegraph Company, the stock first joined the Dow in 1916. It was dropped from the industrial average in 1928, added back in 1939, and dropped again in 2004.

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Shares have outperformed the S&P 500 by 20 percentage points over the past 52 weeks. Microsoft joined the Dow in 1999 at the height of the dot-com boom. It should come as no surprise that many of the top-performing stocks since 1926 are components of the Dow, which dates back to 1896. The popular benchmark is made up of 30 of the bluest blue-chip stocks available to investors, and components change infrequently. Pfizer, founded in 1849 and public since 1942, had to wait until 2004 before it was finally added to the industrial average.

• That is, if person A invested the same amount in global equities as person B and both invested for 120 years, person A would have 165 times more money than person B.
• In the U.S., Marlboro’s sales are greater than the next eight brands combined.
• While Hormel’s sales are primarily from North America (90%), the company is currently working on expanding its international presence.
• Few blue chips offer so much exposure to so many emerging endeavors and technologies, which explains the semiconductor stock’s relatively recent meteoric rise – and the outsized wealth it created for shareholders.
• And on this page, you’ll find timely analysis of selected IBD 50 stocks that are near a buy point or trading in a new buy zone.

Somewhat surprisingly, J&J wasn’t added to the Dow until 1997, even though shares had been publicly traded since 1944. The ever-rising dividend, along with the popularity of its products, eventually made the stock too conspicuous to ignore. J&J has increased the amount of its annual cash payout to shareholders every year since 1963.

The stock price, adjusted for splits and dividends, remains well below its 2000 peak near $95 a share. In the past 17 years, Merck has experienced plenty of ups and downs, from the Vioxx recall in 2004 to its megamerger with Schering-Plough in 2009. With nearly $40 billion in annual sales, Merck remains a formidable player in the global drug business. Verizon has been a Dow stock since 2004, and it’s currently the sole representative of the telecommunications industry. Rival AT&T was dropped from the industrial average in 2015 to make room for Apple . Verizon came out of the 1980’s federal break-up of the old AT&T on antitrust grounds.

Best-Performing Stocks of the Past 30 Years

By buying this kind of index fund, you’ll get the weighted average of all the holdings, and you’ll outperform most investors, even the pros, over time. Despite the two world wars, a cold war, multiple economic crises, and many other global events in the last 120 years, global equity markets have only continued to grow in the long run. Denmark has been ranked fifth in our list of the top five highest-performing stock markets since 1900. Several factors have contributed to the expansion of Denmark’s stock markets.

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Amoco opened its first service station in 1912 and later moved into oil and gas exploration. Oil giant BP acquired Amoco in 1998, the combined companies became the largest producer of oil and natural gas in the U.S. Soon after, Amoco’s ubiquitous service stations were rebranded BP.

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In 2003, it changed its name to Altria Group and spun off its international operations as Phillip Morris International in 2008. HollyFrontier has had a significant location advantage over other refiners, such as those on the East and Gulf coasts, because its refineries are close to the locations of booming U.S. shale operations. In the past decade, advances in hydraulic fracturing technology have greatly increased U.S. oil production, which more than doubled from 2008 to 2018.

It seems that due to its geographical location, the country sustained little damage from WWII. Also, the country’s strong banking sector and service-based economy have made it better able to handle financial crises than the U.S. and other countries. Over the previous 120 years, business and the economy have seen significant transformations.

Since 1900, the stock market in the United States has produced positive returns. This means that a $1 invested in 1900 would be worth $3,806 at the end of 2019. Considering dividends how to choose a reliable forex broker and stock splits, it might even worth more, and that is the inflation-adjusted return. Altria’s origins can be traced back to a 19th century tobacco shop in London.

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We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. At Bankrate we strive to help you make smarter financial decisions. While we adhere to stricteditorial integrity, this post may contain references to products from our partners. Bankrate senior reporter atfx overview James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more. There’s never any guarantee for the future, but it’s a pretty safe bet that most of these companies will continue to be competitive and profitable for many decades to come.

Its offerings are used by engineers, designers, researchers, and students across industries including aerospace and defense, automotive, energy, consumer products, healthcare, and sports. The tech titan sold close to 218 million iPhones last fiscal year. It has grown its net sales from just under $8 billion in the year to September 2000 to $266 billion last fiscal year, and net income from $786 million to $59.5 billion over the same period. Ross Stores is the largest off-price retailer in the US, offering discounts of 20% to 60% on name-brand apparel, footwear, and other items compared to department and specialty stores. The company opened its first Ross Dress for Less in 1982 and now runs more than 1,700 stores across 38 states, the District of Columbia, and Guam.

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(Buffett’s Berkshire Hathaway holds a 16% stake in Phillips 66.) ConocoPhillips is just one of a number of energy companies that lays claim to greatness when it comes to the lifetime wealth creation of its shares. Boeing, a Dow component since 1987, forms half of the duopoly for large commercial airliners. Only Europe’s Airbus competes with it on the same level in making big jets.

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BRO has produced annualized EPS growth of 9.5% over the last five years. Analysts expect 13.2% yearly earnings growth over the next five years. The stock has seen strong price performance, outpacing the S&P 500 by more than 17% per year over the last five years. The company has grown EPS by an average of 22.7% per year over the last five years, and analysts expect EPS to grow by 10.5% per year over the next five years.

Visa, like rival Mastercard, is a favorite name with analysts, hedge funds and billionaires, including Warren Buffett. Berkshire Hathaway owns more than 9.5 million shares in the payments processor. The holding company also has a large diagnostics business, but it’s the pharma division – and its leadership in cancer treatments – that gets the most attention from global investors.

Stocks Mentioned

It also makes equities a more liquid investment than other possibilities, such as real estate assets, which are difficult to sell. A share of stock indicates a unit of ownership in the company that issued the stock. It enables you to own a little portion of a company whose products or services you enjoy.

“History shows that growth and earnings continue to deteriorate into market troughs before financial conditions ease materially.” Moreover, owing to its low corruption index, fair and transparent legislation, and well-developed education system, Australia has also become a popular destination for overseas investors. Despite the COVID-19 outbreak, Australian equity markets have performed admirably in the last few years. Investors won’t have to stress when investing in a diverse company like Microsoft because it has acquired so many different platforms and services to expand its brand. Boeing has been an excellent investment because it continues to deliver growth and revenue for its investors.

Analysts expect average annual earnings growth over the next five years to be around 9%. Marsh & McLennan operates a range of businesses, including insurance, risk and reinsurance services, human resource support and consulting. Apple’s dividend yield is a modest 0.6%, while the shareholder yield is an impressive 4%, as the company has been working hard to reduce the number of shares outstanding.

Intel also remains the biggest player in making CPUs for back-end servers, which are very much in demand to power the rapid shift to cloud-based computing. It’s important to note that Berkshire Hathaway is the only company on this list of the most consistent blue chip stocks that currently doesn’t pay a dividend. AVGO’s share price has strong historical performance, outpacing the S&P 500 by 11.6% annually over the last five years. It also offers the highest dividend yield on the list at 3.3%, and the company has steadily increased its dividend payout for more than a decade.

Include dividends, however, and WMT’s total return comes to 3,890%. Consumer staples stocks like Nestlé are defensive in nature and tend to lag in up markets. Nestlé serves as proof that when held patiently over several market cycles, defensive dividend payers can create more than their fair share of wealth over the long haul. And analysts expect more of the same going forward, thanks to the ongoing revolution in digital transactions.

The pharmaceutical giant earned the honor in large part thanks to its history of selling blockbuster drugs. A string of acquisitions has helped make UnitedHealth Group one of the largest health insurance companies in the world. The company was incorporated under the UnitedHealthcare the most suitable account type for me name in 1977 and went public in 1984. Along the way it beefed up its businesses by buying or merging with MetraHealth, HealthWise of America and AmeriChoice, among many others. The company’s OptumRx subsidiary is one of the largest pharmacy benefits managers in the U.S.

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