These days it’s easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Weis Markets, Inc. (NYSE:WMK) share price is 30% higher than it was a year ago, much better than the market return of around 19% (not including dividends) in the same period. That’s a solid performance by our standards! Looking back further, the share price is 25% higher than it was three years ago.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Weis Markets the TSR over the last year was 34%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
We’re pleased to report that Weis Markets shareholders have received a total shareholder return of 34% over one year. That’s including the dividend. That’s better than the annualised return of 6% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before forming an opinion on Weis Markets you might want to consider these 3 valuation metrics.
