Did You Participate In Any Of Big Yellow Group's (LON:BYG) Respectable 76% Return?
Stock pickers are generally looking for stocks that will outperform the broader market. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, long term Big Yellow Group Plc (LON:BYG) shareholders have enjoyed a 49% share price rise over the last half decade, well in excess of the market decline of around 12% (not including dividends). Essentially, it doesn't seem likely that investors are focused on EPS. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead. On the other hand, Big Yellow Group's revenue is growing nicely, at a compound rate of 7.1% over the last five years. In that case, the company may be sacrificing current earnings per share to drive growth. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Big Yellow Group's TSR for the last 5 years was 76%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!