The Bank of Queensland Limited (ASX: BOQ) share price has pushed higher over the past decade, up around 40%. In comparison, the S&P/ASX 200 Index (ASX: XJO), is up around 85% over the same time frame.
During October 2019, Bank of Queensland shares were hovering around today’s levels, before freefalling thereafter. While the regional banks’ shares have somewhat recovered, they are still a long way off 2015’s record high $13 mark.
Nonetheless, we wind the clock back and see how much an investor would have made if they had invested $1,000 in Bank of Queensland shares a decade ago.
How much would your initial investment be worth now?
If you spent $1,000 on Bank of Queensland shares exactly 10 years ago, you would have picked them up for $6.45 apiece. The purchase would deliver approximately 155 shares without reinvesting the dividends.
Looking at Friday’s closing price, the Bank of Queensland share price finished at $9.23. This means those 155 shares would be worth $1,430.65 (155 shares x $9.23).
In percentage terms, the initial investment implies a gain of around 43.07% or a yearly average return of 3.65%. Comparing that to the ASX 200, the benchmark index has given back 6.22% over a 10-year period.
And the dividends?
Over the course of the last decade, the Bank of Queensland has made a total of 19 dividend payments from 2011 to 2021. Its most recent dividend distributions were significantly reduced due to the pandemic severely affecting its operations and bottom line.
Adding those 19 dividends payments gives us an amount of $6.08 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $942.40 (155 shares x 6.08).
When putting both the initial investment gains and dividend distribution, an investor would have made roughly $2,373.05.
Bank of Queensland share price snapshot
Over the past 12 months, the Bank of Queensland share price has moved 65% higher and is up around 20% year to date.
Bank of Queensland presides a market capitalisation of roughly $5.92 billion, with more than 640 million shares on its registry.
Should you invest $1,000 in Bank of Queensland right now?
Before you consider Bank of Queensland, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bank of Queensland wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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