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Dec. 1, 2020, 3:25 p.m. EST

LGBT-friendly companies outperform in the stock market, Credit Suisse says

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By Steve Goldstein

Companies more tolerant of differences in sexuality and gender identity have seen a stock-price boost as well, according to an analysis from Credit Suisse.

The investment bank put together a list of what it calls the LGBT-350. There are companies either with openly lesbian, gay, bisexual or transgender senior managers and/or are voted LGBT+ inclusive employers in leading surveys.

The top five companies are the same as in the S&P 500 — tech giants Apple /zigman2/quotes/202934861/composite AAPL +1.61% , Microsoft /zigman2/quotes/207732364/composite MSFT +0.44% and Alphabet /zigman2/quotes/202490156/composite GOOGL +0.45% , online retailer Amazon.com /zigman2/quotes/210331248/composite AMZN -0.45% , and social media company Facebook /zigman2/quotes/205064656/composite FB +0.60% . The list is overwhelmingly U.S.-based, with Asian companies representing just 2% of its index.

The Credit Suisse team put its list of top LGBT+ friendly companies against the MSCI All Country world index without those components. Credit Suisse also adjusted by sector. What it found was a return, since the start of 2010, of 9.1% a year, an outperformance of 378 basis points a year.

Credit Suisse stressed it hasn’t found that LGBT friendliness is the cause of these gains. But the analysts — Eugene Klerk, Bahar Sezer Longworth and Richard Kersley — point out the benefits include the ability to attract and retain talent as well as draw in LGBT customers.

Citing data from Gallup, about 8% of U.S. millennials self-identify as LGBT+. If 5% to 10% of the population is LGBT+, that would make the group the world’s number three or four economy.

The Credit Suisse analysis came on the same day Nasdaq /zigman2/quotes/205547889/composite NDAQ -0.69% proposed new listing rules. The rules would require most Nasdaq-listed companies to have, or explain why they do not have, at least two diverse directors, including one who self-identifies as female and one who self-identifies as either an underrepresented minority or LGBTQ+.

The Nasdaq proposal requires approval from the Securities and Exchange Commission.

/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 139.07
+2.20 +1.61%
Volume: 114.46M
Jan. 22, 2021 4:00p
P/E Ratio
42.57
Dividend Yield
0.59%
Market Cap
$2339.61 billion
Rev. per Employee
$1.86M
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/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 225.95
+0.98 +0.44%
Volume: 30.17M
Jan. 22, 2021 4:00p
P/E Ratio
36.45
Dividend Yield
0.99%
Market Cap
$1708.29 billion
Rev. per Employee
$877,393
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/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 1,892.56
+8.41 +0.45%
Volume: 1.64M
Jan. 22, 2021 4:00p
P/E Ratio
37.79
Dividend Yield
N/A
Market Cap
$1282.98 billion
Rev. per Employee
$1.36M
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/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,292.23
-14.76 -0.45%
Volume: 2.82M
Jan. 22, 2021 4:00p
P/E Ratio
96.41
Dividend Yield
N/A
Market Cap
$1651.88 billion
Rev. per Employee
$351,531
loading...
/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 274.50
+1.63 +0.60%
Volume: 21.95M
Jan. 22, 2021 4:00p
P/E Ratio
31.26
Dividend Yield
N/A
Market Cap
$781.86 billion
Rev. per Employee
$1.57M
loading...
/zigman2/quotes/205547889/composite
US : U.S.: Nasdaq
$ 140.42
-0.98 -0.69%
Volume: 1.13M
Jan. 22, 2021 4:00p
P/E Ratio
25.74
Dividend Yield
1.40%
Market Cap
$23.03 billion
Rev. per Employee
$977,299
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