The Labor Day holiday marks the end of summer and honors the American worker.

In this spirit, let’s look at the performance of two stocks loved not only by their shareholders… but also by their employees.

[ad#Google Adsense 336×280-IA]The market often cheers layoffs and plant closings by bidding up shares of a company’s stock. Employees, on the other hand, are left mourning their lost jobs.

However, these two companies prove that happy employees and happy shareholders can go hand in hand.

And in both cases, their stock prices have outperformed the S&P 500 by a landslide.

Plus, employees of these companies report high levels of trust and overall job satisfaction.

In fact, both rank on Fortune magazine’s annual list of the “100 Best Companies to Work For.”

This year, Alphabet Inc. (Nasdaq: GOOGL), formerly known as Google, was named the No. 1 company to work for. This marks the seventh year that the company has held the top spot.

Employees report feeling “valued” and “respected.” They enjoy benefits like free organic meals and snacks, on-site napping pods, fitness classes, and even oil changes.

Shareholders are feeling the love, too. Since Alphabet first appeared on the “Best Companies” list 10 years ago, its returns have beaten the S&P 500 by almost 200%!

Alphabet’s stock price is up 309%. The S&P 500 is up 111%.

But like I said earlier, Alphabet isn’t the only stock with happy employees and investors. Camden Property Trust (NYSE: CPT) is also pleasing its workers and shareholders.

Its ranking improved from No. 10 on Fortune’s list in 2015 to No. 9 in 2016. This is the ninth year the company has been included.

Camden is a successful real estate investment trust that owns and operates apartment complexes throughout the U.S. Its employees enjoy perks like discounted rent, college scholarships and company-paid healthcare.

In the last nine years, Camden Property Trust has returned 142.77% to investors. The S&P 500 is up just 81.52%. Camden Property Trust investors have beaten the index by 61.25% since the company joined the lineup.

Alphabet and Camden Property Trust are just two examples of companies making a dedicated effort to keep both employees and investors satisfied.

Although it isn’t a perfect indicator, research has shown a correlation between employee happiness and share prices. Rising and falling share price movements tend to similarly follow rising and falling employee sentiment.

Happy employees can be good for profits because they are more productive. And in the end, they have a greater positive impact on a company’s bottom line.

This Labor Day, consider adding an “employee approved” stock to your portfolio.

Good investing,

Kristin

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Source: Wealthy Retirement