Whatever happened to the heroes? In todays nervystock markets, all-action stocks are hard to find.The following four stocks have all performed heroics for investors at some point. Are they yesterdays men or can they make a fighting comeback?
Do Or Diageo
I will always have fond memories of Diageo (LSE: DGE), which blew me away during its glory growth years under formerchief executive Paul Walsh. His growth charge and acquisitionssplurge doubled the companys share price afterthe financial crisis, and servedme a spirited return. Successor Ivan Menezes switched targets to building the spirit giants premium core brands rather than simply blazing away formarket share.
The result is thatDiageo is no longer to die for, with the share pricedown 12% over the last two years. Waryemerging markets consumers have lost their thirst for pricier brands, whilethe crackdown on luxury gifting in China wont have helped. Sometimes I wonder about the long-term outlook, too, given todays less-boozyyoung Westerners. YetDiageo trades at nearly 20 times earnings and yields a sober3.24%. Ill save my ammunition.
Reckitt Ralph
Household goods giant Reckitt Benckiser Group (LSE: RB) has heroic potential despite beingovershadowed by rival Unilever. It has showed its defensive powers this year, rising almost12% against a 10% drop on the FTSE 100 as a whole. First-half results showed its continuing firepower, with risingsales, margins and earnings per share, as well asdouble-digit growth in its health division. Power brands like Nurofen and Cillitt Bang are still hanging tough.
The dividend is reasonably well covered at 1.7 times but its 2.42% yield disappoints. Reckitt Benckiser makes a reliable comrade: you know it has your portfolios back. But at nearly 25 times earnings, I wouldnt go over the top for it.
Standard And Deliver!
Standard Life (LSE: SL) is another stock that gets overlooked as investors charge into insurance rivals such as Aviva, L&G and Prudential, yet it will still havedoubled your money over the last five years. The last six months have disappointed, but it was bound to suffer the odd reverse after such a lengthy period of stellar growth. Despite falling 12% in the last threemonths, it still trades at a pricey 26 times earnings.
I usually run for cover at that kind of valuation, butits meaty4.24% yield offerssome protection. Strong net investor inflows, rising income from fees and charges, and a successful advisory distribution model suggest that Standard Life could go great guns, once the current market rout is over. But it is expensive.
Electric Shocker
SSE (LSE: SSE) is a true dividend hero, having raised its payments every year since 1992, and at a muscular compound annual rate of 10%. Unfortunately, I suspect itsglory days are over for now.In July it admitted losing a small army of customers, 90,000 in the second quarter, a horrific rate of attrition.
SEEstill has 8.49 million left but those kind of losses arent good for morale, especially since it delivered a profit warning at the same time. It 6% dividend yield no longer looksbullet-proof, asearnings per share fall and smaller rivals continue to snipe offdisillusioned utility customers. Oldsoldiers never die, the danger is that SSE will onlyfade away.
The UK stock marketstill offers the prospect of heroicreturns, if you know where to look.
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Harvey Jones has no position in any shares mentioned. The Motley Fool UK has recommended and owns shares in Unilever.We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.