Recession or Depression Proof Stocks
The best performing Fortune 500 stocks last year were stocks of two companies that offer extreme value with the going gets rough. The two stocks are Dollar Tree and Family Dollar Stores. Seems like there is nothing like real bargains to keep sales and profits growing during tough times.
1. Dollar Tree
Dollar Tree
Fortune 500 rank: 499
2008 revenue: $4.6 billion
2008 total shareholder return: 60.8%
A newcomer to the Fortune 500, Dollar Tree was also its best performing stock last year, returning nearly 61%. That was no small feat: As a group, the Fortune 500 sank 41%. The company cashed in on the recession, as a $1 (or less) price on everything from candy to glassware drove sales at more than 3,500 stores.
2. Family Dollar Stores
Family Dollar Stores
Fortune 500 rank: 359
2008 revenue: $6.98 billion
2008 total shareholder return: 38.9%
There’s nothing like a recession to draw customers into a dollar store. Family Dollar raked in $6.9 billion in sales last year, and its stock soared nearly 40%. An expanding assortment of goods – including ready-to-serve soups and Hanes underwear – helped boost business. The average amount spent per customer: $10.
Of the 500 companies in the Fortune 500 only 24 provided shareholders with a positive return. To see which companies were successful in gaining value even in a horrible year for most investors take a look at the Fortune slide show of top performing stocks for 2008.
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