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It’s been five years since the FTSE 100 crashed near the start of the pandemic. While some strugglers have been relegated to the FTSE 250 since March 2020, many Footsie stocks have rebounded strongly.
Indeed, according to data from Hargreaves Lansdown, 37 of the current members have since doubled their share prices. And that’s not even including dividends!
Here are the five top-performing blue-chip shares in ascending order (excluding dividends).
In fifth spot is Games Workshop (LSE: GAW), which was promoted to the FTSE 100 at the end of last year. Shares of the tabletop wargame maker are up by a mouth-watering 263% in five years.
With everyone stuck at home, the pandemic proved to be a boon for the firm. Many people discovered or re-engaged with the fictional universe of Warhammer, boosting sales and profits.
The company has kept many of those customers and added new ones too. Revenue has climbed from £270m in its 2019/2020 financial year to an expected £586m for this one (ending May).
Net profit has surged by around 150% over this time, supporting a big rise in the dividend. Quite simply, the company has performed wonderfully and shareholders (myself included) have been handsomely rewarded.
Nowadays, over 75% of its revenue comes from abroad. While that’s a positive thing, it does present currency risk due to the expanding international footprint. That is, fluctuations in exchange rates can reduce as well as boost reported profits.
Looking ahead though, I expect the business to keep growing as it exploits its rich repository of intellectual property, including turning Warhammer into films and TV shows in partnership with Amazon. Growth in Asia is also very strong.
Games Workshop shares aren’t cheap at 27 times earnings. But I expect to still be holding mine in five years’ time.
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In fourth place is NatWest Group, whose shares are up 273%. Like other lenders, NatWest has benefitted from higher interest rates and improved net interest margins (the difference between what the bank earns on loans and pays on deposits).
Additionally, the British Government has been gradually selling down its stake, while rising dividends and share buybacks have boosted investor sentiment. But even after the stock’s surge, NatWest’s forward dividend yield is close to 6%.
Third is Airtel Africa. This isn’t one I follow closely, but it should have been. Shares of the telecoms firm are up by a very impressive 311%.
Taking second spot is private equity firm 3i Group, which is up by a stonking 456%. This has been driven by its largest holding Action, the discount retailer that has spread like wildfire across Europe.
And the crown goes to…
Since the Covid crash five years ago, the standout winner has been…drum roll, please…Rolls-Royce.
Shares of the engine maker are up by a surreal 549%.
Rolls’ successful turnaround has been driven by cost-cutting measures and renegotiated contracts, as well as the post-Covid recovery in air travel and rising defence spending. Profits margins are up and debt is down significantly.
The shares trade at a premium 27 times earnings, which doesn’t leave much room for error (slowing growth, for example, or an earnings hiccup). But as a shareholder since mid-2023, I’m more than happy with the returns so far.
