These 3 'boring' stocks are crushing the S&P 500 in last 5 years

$W.W. Grainger(GWW)$ , $McDonald's(MCD)$ , $Procter & Gamble(PG)$

When the market is turbulent, investors should consider a more conservative investment strategy to preserve their strength, such as investing in companies that have been operating successfully for decades and can stand the test of time.

These 3 Dividend Aristocrats, $W.W. Grainger(GWW)$ , $Procter & Gamble(PG)$ and $McDonald's(MCD)$ are "boring" but undeniably stable stocks.

It might even come as a surprise to investors that all three stocks have outperformed the $S&P 500(.SPX)$ in aggregate over the past 5 years.

As of May 5th 2023

Specifically, over the past 5 years, the total return on $W.W. Grainger(GWW)$ was 128.17%, $Procter & Gamble(PG)$ and $McDonald's(MCD)$ were 112.68% and 79.33%, respectively, and the total return on the $S&P 500(.SPX)$ over the same period was 51.64%.

$W.W. Grainger(GWW)$

Over the past few months, analysts have raised W.W. Grainger's earnings forecasts for various periods of time. The stock currently yields a 1% annualized dividend with a 21% payout ratio and has continued to grow its dividend over the past few years. In addition to shareholder friendliness, W.W. Grainger's growth is also good. Its earnings in FY23 are expected to grow by 18%, and it is expected to continue to grow by 6% in FY24.

$Procter & Gamble(PG)$

Must-choose consumer giant Procter & Gamble reported better-than-expected performance and optimistic financial forecasts in its latest financial report. After the financial report, the stock price closed up 3.5%. Earnings are up 3% year-over-year, revenue is up 4%, and the company's revenue growth rate has been very steady over the past five years. Procter & Gamble's current annual dividend rate is 2.4%, which is slightly lower than the average level of the must-choice consumer sector, but the five-year annualized dividend growth rate is as high as 6.3%. In addition, the dynamic price-earnings ratio of the stock is 26.7, which is much higher than the 5-year median of 24.1, and the valuation is high.

$McDonald's(MCD)$

McDonald's latest earnings results far exceeded expectations, in which earnings per share beat estimates by 14%. The stock's current annual dividend yield of 2.1% is almost double the retail and wholesale sector average, and the company's payout has grown by 10% in the past year alone.