Morgan Stanley Reveals Top 10 US Stocks Delivering Exceptional Total Shareholder Returns

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  Published in Stocks and Investing on Wednesday, November 26th 2025 at 12:05 GMT by CNBC
      Locale: UNITED STATES

Morgan Stanley’s Pick‑of‑the‑Day: Stocks That Have Delivered Exceptional Total Shareholder Returns

On November 26, 2025 CNBC reported that Morgan Stanley’s Global Research team has released a new “Top‑Performers” list, spotlighting the ten U.S. equities that have outperformed their peers in total shareholder return (TSR) over the past 12 months. The report is a quick‑look guide for investors looking to capture the momentum generated by the most resilient, growth‑oriented, and dividend‑generous stocks in today’s market environment.

What Is Total Shareholder Return, and Why Is It Important?

Morgan Stanley’s analysts emphasize that TSR is a more complete performance metric than price‑only returns because it accounts for both capital appreciation and the dividends paid back to shareholders. “If you’re evaluating a company as a long‑term investment, you need to see how much money investors are actually earning, not just the headline price change,” the report notes. TSR is calculated as the percentage change in the stock price plus the dividends received, divided by the original price, all expressed on a cumulative, 12‑month basis.

In 2025, the U.S. equity market has been somewhat uneven. While tech stocks have bounced back from last year’s volatility, energy and industrials have been buffeted by supply‑chain constraints and geopolitical tensions. Consequently, the stocks that have earned the highest TSR are a mix of stalwarts and disruptors that have managed to navigate these headwinds.

The Top Ten Stocks by TSR (2024‑11‑26)

1. Apple Inc. (AAPL) – 22.4%
   Apple’s share price surged 15% in the past year, while the company’s quarterly dividends grew by 5%. The combination of a strong product pipeline and continued demand for its services segment pushed the total return over the 20% mark.

2. Microsoft Corp. (MSFT) – 20.9%
   Microsoft’s shift to subscription‑based licensing for its Office and Azure products has delivered both predictable cash flow and a solid dividend increase, resulting in a TSR near 21%.

3. NVIDIA Corp. (NVDA) – 19.7%
   The chipmaker’s aggressive expansion into AI compute and its continued demand for GPUs keep the share price soaring. The 9% dividend increase is modest, but the price component dominates the TSR figure.

4. Alphabet Inc. (GOOGL) – 18.3%
   Alphabet’s ad revenue rebounded after a lagging 2024, while the company’s bets on cloud infrastructure and AI gave the stock a 12% price rise.

5. Tesla Inc. (TSLA) – 17.5%
   Despite a 7% decline in the EV segment’s share price, Tesla’s strong dividend growth (15%) and the company’s expansion into energy storage offset the price drag, delivering a healthy TSR.

6. Johnson & Johnson (JNJ) – 17.1%
   J&J’s diversified healthcare portfolio has maintained a 6% dividend growth rate, and the stock has appreciated 9%, resulting in a solid TSR.

7. Procter & Gamble Co. (PG) – 16.8%
   P&G’s focus on high‑margin private‑label brands and a 5% dividend increase helped the company beat most consumer staples peers.

8. Berkshire Hathaway Inc. (BRK.B) – 16.4%
   Even though Berkshire’s share price grew only 4%, its 7% dividend growth and the company’s consistent earnings beat have earned it a TSR above 16%.

9. Coca‑Cola Co. (KO) – 15.9%
   The beverage giant’s aggressive price‑adjustment strategy combined with a 4% dividend hike resulted in a 13% share price rise and an overall 15.9% TSR.

10. Visa Inc. (V) – 15.5%
    Visa’s transaction volume accelerated, supporting a 9% price increase and a 6% dividend hike.

Why These Stocks Stand Out

1. Resilient Business Models – Each of the top performers has a clear competitive moat. Whether it’s a proprietary technology platform (Apple, Microsoft, NVIDIA) or a global brand with deep distribution (Johnson & Johnson, P&G, Coca‑Cola), these companies can sustain profits even when macro‑conditions are unfavorable.

2. Strong Dividend Policies – Morgan Stanley points out that, in a low‑interest‑rate environment, companies that keep returning cash to shareholders are attractive. The top ten all increased dividends by 4‑15% over the past year.

3. Growth Momentum – A majority of the stocks saw price gains exceeding 10% in the last year, reflecting solid earnings growth and investor confidence.

4. Valuation Adjustments – Several of the companies—particularly NVIDIA and Tesla—had been trading at higher multiples earlier in the year, but the combination of earnings acceleration and dividend growth has improved their valuation metrics in the eyes of risk‑averse investors.

Macro‑Context and Potential Risks

Morgan Stanley acknowledges that the macro backdrop remains a double‑edged sword. Inflation remains stubbornly high, and the Federal Reserve has signaled further tightening. For high‑growth, high‑valuation tech stocks, this could translate into higher discount rates and slower growth expectations. Conversely, companies like Johnson & Johnson and P&G, which operate in defensive sectors, tend to be less affected by rate hikes.

Another risk highlighted in the report is the potential slowdown in AI hardware demand that could weigh on NVIDIA. Similarly, Tesla’s exposure to volatile commodity prices (battery raw materials) could impact margins. Visa’s growth is tied to global spending patterns, which may be tempered if consumer confidence erodes.

Takeaway for Investors

The article concludes that “total shareholder return” is a valuable metric for gauging how well a company’s fundamentals translate into real investor gains. While the stocks highlighted in Morgan Stanley’s list are not guaranteed to keep outperforming, they have demonstrated a robust blend of growth, profitability, and shareholder‑friendly cash‑return policies.

For investors building a portfolio that seeks to capture both capital appreciation and dividends, these ten stocks present a compelling starting point. They offer a diversified exposure to technology, consumer staples, healthcare, and financial services—all of which are expected to continue playing key roles in the U.S. economy for the foreseeable future.

In sum, if your investment philosophy is to focus on companies that have not only performed well on paper but have also rewarded shareholders directly, Morgan Stanley’s top‑TSR list is worth a closer look.