Is investing in boring firms the answer to smashing the opposition? The top 10 best returning stocks since 2007 revealed

 
Oliver Gill
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Packaging returns to investors. Shareholders in one support services giant will be rather pleased with how it has done over the last 10 years (Source: Bunzl)

Support services firms. For some, they may not be in the sexiest of sectors. But research released today suggests this is where you should put your money.

And if we are getting specific, analysis by AJ Bell highlights a standout performer in packaging to distribution giant Bunzl.

Read more: Bunzl buys US-based "mini-Bunzl" in $160m deal

Bunzl has returned a whopping 4,169.8 per cent to investors, in terms of dividends and capital gains, since April 2007.

Furthermore, Bunzl's performance is over three times better that of its nearest rival, tech firm Micro Focus.

Top 10 best performing FTSE 100 stocks since 2007

Rank Company

Total return since 7 April 2017

1

Bunzl

4,169.8%

2

Micro Focus International

1,348.9%

3

Ashtead

1,215.6%

4

Paddy Power Betfair

659.4%

5

Croda

630.3%

6

Compass

479.1%

7

DCC

444.6%

8

Intertek

422.8%

9

British American Tobacco

412.4%

10

Shire

356.2%

The analysis also revealed the stellar returns generated was not due to rapid dividend growth. Bunzl has grown its shareholder pay outs by an average of 8.4 per cent each year since 2007.

In a separate study by fund manager Investec, more than half (57 per cent) of respondents admitted preferring well-known UK firms ahead of lower profile competitors.

Investec also highlighted Bunzl as its top pick, with stellar returns over the last 10 years.

“It’s understandable that many retail investors will be drawn to companies they know and have heard of, or see regularly on the High Street," said Investec's head of equity research Guy Ellison, adding:

Many investors are potentially missing out on superior investment opportunities elsewhere, while leaving themselves vulnerable to an over-concentration in certain sectors which are familiar such as retail, travel and leisure and banking.


(Source: Bunzl)

Steady-away

News of Bunzl's success came as the acquisitive firm announced yet another quarter of steady-away results.

In a trading update, the firm said first quarter revenues had grown by 18 per cent on a constant exchange rate basis.

Read more: Bunzl's flashes the cash on workwear firms

Despite some excitement generated by £260m spend on buying new firms over the last 12 months, Bunzl was typically muted in its analysis.

The firm said in a statement: "There has been no significant change in Bunzl’s financial position during the period and the group continues to have substantial funding headroom available."

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