The FTSE 100 generated an 11.4% total return in 2024, with 18 stocks on the index generating a return of 30% or more and beating the S&P 500 this year.
According to an analysis by AJ Bell, about half of the index (48 stocks) have produced a double-digit return and nearly two-thirds (63 stocks) made investors money if held all year, factoring in share price movements and dividends.
Dan Coatsworth, investment analyst at AJ Bell, said: “The UK stock market doesn’t deserve its unloved reputation. While it may lack the glitz and glamour of the US market, it’s still full of interesting companies offering steady earnings growth. Fundamentally, the FTSE 100 can help provide ballast to an ISA or pension portfolio, particularly as the index has a rich source of dividends and a good mix of cyclical and defensive companies.
“The average total return for the index is 7.1% over the past decade. It has achieved double-digit returns in five of the past 10 years.”
FTSE 100: The best performers in 2024
NatWest was the best FTSE 100 performer this year, with the high street bank achieving returns of 99.3%. It was closely followed by Rolls-Royce (95.7%) and packaging company DS Smith (87.8%).
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Coatsworth said: “NatWest was a beneficiary of regular upgrades to earnings forecasts during the year. It delivered impressive results thanks to improved margins and growth in lending and savings deposits.
“Rolls-Royce is a true phoenix from the ashes story. Having disappointed for years on cash flow, Warren East laid the foundations for running a tighter ship at Rolls-Royce, but his successor Tufan Erginbilgiç is the one basking in all the glory for this grand turnaround.
“Upgraded earnings forecasts can be a powerful share price catalyst and analysts have found reason time and time again over the past few years to nudge up their expectations for the British engineer.”
Other top-performing companies include International Consolidated Airlines (85.2%), Barclays (79.3%) and Beazley (60.7%).
FTSE 100: The worst performers in 2024
At the other end of the scale, JD Sports was the worst performing FTSE 100 company in 2024, down 36.4%. Other firms that had a bad year include B&M (down 31.4%) and Croda (down 30.8%).
Coatsworth said: “JD Sports started the year with a profit warning caused by mild weather and heavy discounting affecting pre-Christmas 2023 sales. The share price took a beating and only started to recover in earnest during the summer. The retailer was subsequently knocked for six by more weather problems and complaints that the US election hurt demand.
“What was a trusted name in retail is now churning out more excuses than a schoolboy who hasn’t done their homework.”
