Exceptional Yearly Returns – Consistently Thriving Stocks These stocks consistently outperform, delivering an average return of 42% per year.
In the world of investing, finding stocks that deliver exceptional and consistent returns over extended periods is a rare gem. While a select few stocks have garnered attention for their impressive performance, it's essential to separate fact from fiction.
One such claim circulating in the market is the existence of stocks that have generated a staggering 42% annualized return for 20 consecutive years. However, thorough research and analysis have failed to identify any publicly available, verified lists of such stocks. Most broad market data and analyses indicate that even the best-performing stocks or indexes typically return in the range of 10% to 20% per year over long terms.
AutoZone, a U.S.-based company specializing in automotive and auto accessories, is one of the stocks often mentioned in this context. Despite the intriguing claims, it's crucial to note that the AutoZone stock does not pay a dividend, and there is no evidence to support the assertion of a 42% annual return over 20 years.
In reality, AutoZone has achieved a total return of 4,000% over the past 20 years, which equates to an average of 20.4% per year. While this is an impressive feat, it falls short of the 42% annualized return claimed in some circles.
Another stock that has consistently performed well is Deutsche Börse, the German multinational exchange company. Deutsche Börse's dividend yield stands at 2.01%, and over the past 20 years, it has increased by an average of 15.80% per year, including reinvested dividends.
It's essential to approach such high-performing stocks with caution. While they may offer attractive returns, their popularity often prevents them from becoming significantly undervalued. Moreover, factors other than the price-to-earnings ratio play a crucial role in their performance.
In conclusion, while there is no evidence to support the existence of stocks that have delivered a 42% annualized return for 20 consecutive years, there are stocks like AutoZone and Deutsche Börse that have consistently performed well. Investors can consider adding these stocks to their portfolio, but it's crucial to conduct thorough research and maintain a diversified portfolio to manage risk.
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