In today’s tech-centric investment landscape, it’s easy to overlook other lucrative opportunities. While tech giants like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) have dominated headlines with triple-digit returns over the past five years, some investors may be missing out on equally compelling options in the broader market.
While tech stocks tend to shine during bullish phases and stumble in tougher times, there’s a cohort of dividend growth stocks quietly outpacing expectations. Here, we examine three such stocks boasting over 80% returns in the past year, coupled with noteworthy 5-year dividend growth rates.
Lennox International
Established in 1895, Lennox International (NYSE:LII) has evolved into a comprehensive climate control solutions provider, offering heating, ventilation, HVACR, and sustainability-focused solutions. Despite modest growth in 2023, with a 6% increase in full-year revenue to $5 billion and a 19% rise in GAAP diluted EPS, Lennox International has consistently surpassed earnings targets for three consecutive years. Anticipating a 7% revenue growth in 2024, Lennox International’s dividend yield stands at 0.93%, with dividends having surged by an impressive 79.42% over the past five years. The company has recorded a sustained 85.37% price growth over the last 52 weeks, hitting a new 52-week high recently.
NewMarket Corp
In the era of electric vehicles, NewMarket Corp (NYSE:NEU) remains a stalwart in the petroleum industry, manufacturing additives that enhance petroleum product performance. Despite a somewhat lackluster quarterly report, the stock price has remained resilient, marking a 7% increase since the Q4 report release on February 1. Newmarket Corp offers an $8.85 annual dividend, reflecting a 26.43% growth over five years, alongside a remarkable 85.59% 1-year return.
Williams-Sonoma
As the parent company of the renowned brand Pottery Barn, Williams-Sonoma (NYSE:WSM) offers a diverse range of specialty retail products through various channels. Despite a mixed Q3’23 report, marked by a 14.6% decline in comparable brand revenue, Williams-Sonoma achieved record-high margins of 17%. With an annual dividend yield of 1.57% and dividends having doubled in the last five years, Williams-Sonoma presents a compelling investment opportunity. Despite industry challenges, the company boasts an 83.90% 1-year return.
Conclusion
While past performance offers insights, future performance remains uncertain. Nevertheless, these companies have demonstrated remarkable growth, both in the short term and over their history. Investors are advised to conduct thorough due diligence before making investment decisions, ensuring informed choices align with their financial goals and risk tolerance.
Featured Image: Freepik
Author Faith Yakubu 
