The stocks that make up the S&P 500 index have seen their trailing 12-month inflation adjusted real earnings per share (EPS) rise at an average growth rate of 0.89% per year over the past five years through June 30 (calculations are shown in the chart below).
Due to the rising earnings, the S&P 500 index's share price has risen to $3,269.96 at close Friday, gaining 57% over the past five years through Oct. 30.
Thus, investors may want to consider NTT DOCOMO Inc (DCMYY, Financial), Union Pacific Corp (UNP, Financial) and Honeywell International Inc (HON, Financial), as these companies have grown their EPS faster than the S&P 500 over the past five years.
NTT DOCOMO Inc
The Japanese telecom services company saw its trailing 12-month EPS without non-recurring items (NRI) increase by 14% over the past five years.
The stock price gained 87% over the past five years to trade at $37.12 per share at close on Friday for a market capitalization of $119.85 billion, a 52-week range of $25.25 to $38.09 and a price-earnings ratio of 21.29.
NTT DOCOMO Inc is currently paying semi-annual dividends to its shareholders, with the last 55.9 cents per common share payment made on June 29, producing a trailing 12-month dividend yield of 2.99% and a forward dividend yield of 3.01% as of Oct. 30.
Among the top fund holders of the company, Parametric Portfolio Associates LLC owns 0.07% of shares outstanding, while LSV ASSET MANAGEMENT owns 0.01% of shares outstanding.
Union Pacific Corp
The Omaha, Nebraska-based railroad transportation services provider saw its trailing 12-month EPS without NRI increase by nearly 12% over the past five years.
The stock price gained nearly 100% over the past five years to close at $177.19 per share on Friday for a market capitalization of $119.40 billion, a 52-week range of $105.08 to $210.95 and a price-earnings ratio of 22.57.
Union Pacific Corp is currently paying quarterly dividends to its shareholders. On Sept. 30, it distributed 97 cents per common share, which, in line with the previous payment, generated trailing 12-month and forward dividend yields of 2.19% as of Oct. 30.
VANGUARD GROUP INC dominates the group of top fund holders with 8.53%of shares outstanding. It is followed by BlackRock Inc. with 7.23% and STATE STREET CORP with 4.28%.
On Wall Street, the stock has five strong buys, seven buys, 16 holds and only one underperform recommendation rating for an average target price of $210.22 per share.
Honeywell International Inc
The Charlotte, North Carolina-based global diversified technology and manufacturing company saw its trailing 12-month EPS without NRI increase by nearly 7% over the past five years.
The stock price gained 67.2% over the past five years to close at $164.95 per share on Friday for a market capitalization of $115.76 billion, a 52-week range of $101.08 to $184.06 and a price-earnings ratio of 20.29.
Honeywell International Inc is currently paying a quarterly dividend to shareholders, with the last distribution of 93 cents per common share (up 3.7% from the prior payment) scheduled to be sent out on Dec. 4 for a forward dividend yield of 2.26% as of Oct. 30. The trailing 12-month dividend yield stands at 2.18%.
VANGUARD GROUP INC is the leader of the group of top fund holders with 7.55% of shares outstanding. It is followed by BlackRock Inc. with 6.02% and STATE STREET CORP with 4.21% of shares outstanding.
On Wall Street, the stock has seven strong buys, nine buys and four hold recommendation ratings for an average target price of $175.64 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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