AIG and Citigroup - the worst-performing stocks in the S&P 500 index over the past 20 years

The S&P 500 has posted an average annual return of 10.4% over the past 20 years, navigating two major market crashes and double-digit declines, respectively, according to an analysis by visualcapitalist.com.

This highlights that for some stocks, the crises have had lasting effects. In fact, some of the companies most exposed to the subprime mortgage crisis have yet to see their share prices fully return to pre-2008 levels.

The cited source highlights the worst-performing stocks in the S&P 500 index over the past two decades, based on data from Morgan Stanley Counterpoint Global Insights.

American International Group Inc. (AIG), once the world's largest insurance company, saw its annual return decline 11.4% from 2005 to 2024, the worst performer in the S&P 500. The insurance giant had significant exposure to the subprime mortgage market as it increasingly focused on operations other than its core business of underwriting insurance policies, which led to its stock crashing. Between 2005 and 2024, AIG's share price fell from more than $1,100 to $73. Like AIG, the US bank Citigroup was heavily exposed to the credit crisis in 2008-2009 and saw its share price fall from around $490 in January 2005 to $70 at the end of 2024. Over the 20 years, the yield on Citigroup's shares has fallen by 7.1%. Despite Citigroup's heavy losses, the bank ranks among the top US lenders by total assets. However, when it comes to share price performance, Citigroup has significantly underperformed its rivals, including JPMorgan Chase & Co., which successfully weathered the credit crisis thanks to its diversified business model.

The following in the yield rankings are pharmacy chain Walgreens Boots Alliance (-4.3%), media and entertainment giant Paramount Global (-2.5%), energy company APA Corp. (-2.5%), cruise operator Carnival Corp. (-2.1%), pharmaceutical company Viatris Inc. (-0.8%), regional bank KeyCorp. (-0.1%), utility company PG&E Corp. and hospitality company MGM Resorts International (0%).

The analysis mentions automaker Ford Motor Co., with an average annual yield of 1.4%, noting that while the company's shares offer a healthy dividend, stock price appreciation has been minimal due to slow growth and high warranty costs. While Ford shares fell 19% in 2024, its main competitor, General Motors Co. (GM), rose 48%.

Overall, six of the worst-performing stocks over the past 20 years are in the financial sector, including Bank of America and Huntington Bancshares, three are in healthcare, and only one, Intel, is in technology.