Monday, November 9, 2020

4 Big-Name Dividend Stocks Crushing The S&P 500

Most every investor has a benchmark they are trying to beat. For many investors, that benchmark is the S&P 500. It is easily followed and can be directly invested in via many different index funds such as SPDR S&P 500 (SPY) and Vanguard 500 Index Inv (VFINX).

This year my dividend growth portfolio is under-performing the S&P 500. The old adage that trees don't grow to the sky certainty holds true. Obviously, that is not to say that all dividend growth stocks have under-performed.

If we look carefully we can find some gems that have performed quite well so far this year. Below are several multi-billion dollar dividend stocks that have out-performed the S&P 500 this year, to date on an annualized basis:

McDonald's Corporation is (MCD) the largest fast-food restaurant company in the world, with about 35,000 restaurants in 119 countries.
Mkt. Cap: $157.9b | Yield: 2.4% | Adjusted Return: 11.8%

The Procter & Gamble Company (PG) is a leading consumer products company that markets household and personal care products in more than 180 countries.
Mkt. Cap: $343.2b | Yield: 3.2% | Adjusted Return: 14.2%

Wal-Mart Stores, Inc. (WMT) is the largest retailer in the world, operating a chain of over 10,000 discount department stores, wholesale clubs, supermarkets and supercenters.
Mkt. Cap: $397.7b | Yield: 1.6% | Adjusted Return: 22.9%

Microsoft (MSFT), the world's largest software company, develops PC software, including the Windows operating system and the Office application suite.
Mkt. Cap: $1.525T | Yield: 1.1% | Adjusted Return: 36.3%

Over the same period the S&P 500 (SPY) was up 7.2%. The returns were calculated using the IRR() spreadsheet function, which takes into account the timing of dividends, buys and sells. Short-term performance is never the sole reason for long-term investors to buy. What goes up significantly, usually comes back down.

Full Disclosure: Long MCD, PG, WMT, MSFT,

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