Recession fuels top performers
Everyone likes a little extra cash here and there. Better yet, a lot. Unfortunately for most stock market players, that extra cash did not flow in last year. Only 24 Fortune 500 companies saw positive returns on stocks last year, according to Fortune Magazine. Many companies that offer very inexpensive goods and services did well, and chances are those companies will continue to do well this year. Here are the seven best-performing Fortune 500 stocks of 2008.
1. Dollar Tree
This nationwide chain of retail stores that sells all of its merchandise for $1 gave investors a generous return of more than 60 percent last year. The company has 3,500 stores in the United States. It sells everything from dishes and cookware to bubble gum. Many of the stores even sell food, so low-income families don’t need payday loans to afford groceries.
2. Family Dollar
Dollar Tree’s main competition did pretty well for itself, too. As consumers have flooded dollar stores since the beginning of the recession, the company’ stock has improved by 40 percent, giving shareholders a 39 percent return. Family Dollar also sells food, and it has added some Hanes products to its merchandise as well. The average customer at Family Dollar only spends $10.
3. Nash-Finch
As people stayed home to eat instead of spending their money on restaurant food, grocery wholesalers reaped the benefits. Nash-Finch is the second largest food wholesaler in the United States. In 2008 its stocks gave shareholders a 30 percent return. The company also serves military distributors and operates discount grocery stores in the Midwest. Nash-Finch’s sales went up almost 4 percent last year.
4. World Fuel Services
This company, which provides fuel services at airports, seaports and other global locations, flourished despite the economy, not because of it like the other companies that had top-performing stocks. As people cut traveling from their budgets, airlines slashed flights, gas retailers took losses and gas prices fell drastically. Nevertheless, some crafty acquisitions allowed World Fuel Services to give shareholders a 28 percent return.
5. Amgen
This drug maker showed a lot of promise with its osteoporosis drug, denosumab. Investors took the bait, and the company made $15 billion in revenue in 2008. Shareholder return was more than 24 percent. Drug companies in general posted better-than-expected results in 2008.
6. Omincare
Omnicare illustrates the success of pharmaceutical companies in 2008. This company focuses on geriatric drugs and kept revenue growing as aging baby boomers filled their prescriptions. The company also provides health care for more than 1 million nursing home residents. Its shares went up more than 20 percent. Its acquisition of Advanced Care Scripts in mid-2008 helped its revenue as well, which surpassed $6 billion.
7. Wal-Mart
What discussion about companies flourishing during the recession would be complete without a mention of Wal-Mart? The retail giant gave shareholders a 20 percent return, and the company’s revenue was $405.6 billion. It was one of only two Dow Jones stocks to see a positive return. The other was McDonald’s.
The top dollar stores and Wal Mart make a lot of sense. When I was in college, there was a Dollar Tree in town, and I shopped there a lot. It certainly helped, and some of the things you can get there aren’t that bad. Well, as long as you don’t mind eating pasta with the canned sauce instead of the good stuff in the jar at least two days a week – but for snack foods, or if you want to put together an actual plate and glass set for less than $20, then Dollar Tree is awesome.