Weirdest Rap Flex Ever?

Market-Beating Performance From This Overlooked Stock

June 21, 2025

You can find a lot of winning stock ideas by listening to rap music. Companies like LVMH Moët Hennessy and Hermès receive millions of dollars in free publicity thanks to rappers. And, rap music’s opulent nature exposes many high-end niche products to the masses.

But today’s article covers one of the weirdest products I’ve ever heard a rapper brag about.

And, this led me down a rabbit hole which eventually uncovered a unique market-beating stock with double-digit dividend growth.

So what was this weird rap flex?

Tempur-Pedic seats and mattresses.

The gym I lift at always plays rap music. And one afternoon I heard two separate songs that referenced Tempur-Pedic (Pure Water, by Migos and Iced Out My Arms, by DJ Khaled).

Tempur-Pedic makes mattresses and pillows.

The company’s official name, they re-branded earlier this year, is Somnigroup International Inc. ($SGI). Over the past decade, Somnigroup stock has appreciated by more than 288%.

The company initiated a dividend in early 2021. And since then, Somnigroup has consistently grown its dividend by 10%, or more, each year.

Here are some key metrics:

Somnigroup International Inc. ($SGI)

Somnigroup International is the world’s largest bedding company. The company sells their products in over 100 countries. And, Somnigroup owns a portfolio of recognizable brands including: Tempur-Pedic, Sealy, and Stearns & Foster.

The company also owns its own retail stores and distribution channels for selling mattresses. Somnigroup owns multiple retail chains including: Mattress Firm, Sleep Outfitters, Dreams, and Tempur Sealy. And while Somnigroup does sell their mattresses online and through third party retailers, this is primarily a vertically integrated business.

Somnigroup designs, manufactures, and directly sells their products. And this gives the firm an advantage over many competitors in the bedding space.

Due to the company re-branding earlier this year, it was a little hard to calculate Somnigroup’s average annual total return. But, the company is up 288% over the past decade - outperforming the Vanguard S&P 500 ETF's 184.65% return.

And, Somnigroup has achieved an inflation-busting 5-year compound annual dividend growth rate of 16.72%.

  • Forward PE ratio of 25.99

  • 0.92% starting dividend yield

  • 5-year dividend CAGR of 16.72%

  • Payout ratio of 21.26%

  • 10-year stock performance +288.81% 

The stock is a little expensive, trading at a price to earnings ratio of 25.99, but this is a market-beater with inflation-beating dividend growth.

And, I am personally not a fan of consumer discretionary stocks for the simple reason that car insurance and toothpaste are things people have to buy no matter the economic environment, while products like a new mattress are the easiest purchases to skip during tough economic times.

Still, this is a market-beating, inflation-beating business that leads its industry. And that’s worth noticing.

Somnigroup International Inc. is an industry leader with market-beating performance and double-digit dividend growth. This is a stock I’d certainly be interested in buying, if there was a pull back. If shares got a little cheaper and the starting yield got a little higher, Somnigroup would be very appealing.

In the meantime, it’s going on the watchlist!

Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.