Times are tough for UK retailers, though you wouldn’t know if it you have a look at the Greggs (LSE: GRG) share price. It’s ballooned in excess of 150% over the past 12 months, and this has provided the bedrock for some stunning shareholder returns in that time.
In fact, total shareholder gains during the past 12 months have surged 156.4%, with Greggs’ decision to supercharge dividends (the payout for 2018 surged a whopping 11%) also helping that eye-popping increase.
If the baker were able to repeat its performance of the past year, a £10,000 investment into a Stocks and Shares ISA right now (with dividends reinvested) would turn this into £1,108,128 in a mere FIVE years. And it’d take a braver man than me to bet against Greggs delivering some seriously hefty returns, given the pace at which its delicious edibles are flying off the shelves.
Returns have also swelled for individuals holding shares of JD Sports Fashion (LSE: JD), gains which have been driven primarily by the company’s market value swelling more than three-quarters over the last year. This means total shareholder gains have clocked in at a whopping 76.7%.
In the event of this other FTSE 250 company being able to repeat the trick in coming years, a £10k investment in the sportswear retailer today would deliver returns of £1,679,303 after nine years. And who’d rule out JD delivering some seriously titanic returns as it continues on its rapid store expansion programme?
Thde company is a rare bright spot in the British retail segment. Profits at the business sprinted to fresh records last year, thanks in large part to the further progress it’s making on foreign shores. And it opened 18 new stores across Europe, Asia Pacific and North America in the five or so months to 29 June to keep the run going.
One final thing. JD hiked the full-year dividend 5% in the last fiscal period. I wouldn’t bet against rewards continuing to rise each and every year and at a healthy pace too, in light of the firm’s very bright long-term earnings outlook.
Another route to big riches
Along with JD and Greggs, I reckon Diageo (LSE: DGE) is another dividend raiser in great shape to provide some truly titanic returns in the years ahead. It’s been a reliable payout raiser year after year for decades now and was at it again late last week when it also increased the full-year reward by a chunky 5%.
I’ve put my money where my mouth is with this particular stock and stuck it in my own personal ISA. Thanks to Guinness, Captain Morgan and its packed portfolio of much-loved drinks, not to mention its broad geographic footprint, you can rely on the FTSE 100 firm to raise profits consistently and almost without exception. And this lays the base for shareholders to expect some big returns.
A rampant share price means that total gains at Diageo have registered at an impressive 20.6% over the past 12 months, a return which, if replicated over the next 13 years, would turbocharge just £10,000 into a gigantic £1,052,150. It shouldn’t be a surprise when I say that Diageo’s a share I never plan to sell.
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Royston Wild owns shares of Diageo. The Motley Fool UK has recommended Diageo. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.