Investors of all kinds are always looking for ways to make the most of their money. Over the last 30 years, certain investments have produced higher returns than others. In this article, we’ll take a look at what investments have produced the highest percentage returns over the last three decades and how you can use that information to make better decisions in your own portfolio.
The stock market is often one of the first places investors turn when looking to make a profit. The Nasdaq Composite dropped 1.25% to settle at 11,530.33 when the major stock indexes fell, but it's important to remember that not all stocks are created equal. While some stocks may have lost value, others have had substantial appreciation. One of the most successful stocks over the last 30 years is Apple, which saw a stunning 7,500% return over the course of that period.
Bank stocks have also been a source of high returns in the last 30 years. When the Silicon Valley Bank saga has unfolded over the last couple of days, the stock prices of many banks dropped substantially. Nonetheless, over the last 30 years, banks have still produced some of the highest returns. For example, JPMorgan Chase has seen a return of 5,000%.
When it comes to investments with a good dividend yield, stocks have also produced some of the highest returns over the last 30 years. Companies like Microsoft and Visa have seen returns of 4,000% and 3,000%, respectively. For those looking to maximize their returns, investing in stocks with the highest dividend yield should be a priority.
Mutual funds are another great option for those looking for a higher return on their investments. Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment) can be kept low, which helps to maximize your returns. Additionally, funds that have a VGM Score (a measure of the fund's performance over the last three years) of 90 or higher tend to produce higher returns than those with a lower score.
Investing in government bonds or GICs (Guaranteed Investment Certificates) is another way to get a higher return on your money. During his first two years in office, the deficit fell sharply, and the two-year yield dropped by more than 20 basis points. Generally, the longer the GIC term, the higher the interest rate. For example, a 30-year-old may allocate just a small percentage of their portfolio to GICs, but those investments can still produce higher returns over the long-term.
Overall, there are many different investments that can produce a high return over the course of 30 years. That said, it is important to do your research and ensure that you are investing in the right investments for your individual financial goals.