Despite achieving mediocre gains in 2022, the CSR Ltd (ASX: CSR) share price has rocketed higher over the long term.
Below, we take a look and see how much an investor would have made if they had invested $10,000 in CSR shares 10 years ago.
How much would your initial investment be worth now?
Let’s say you spent $10,000 on CSR shares 10 years ago on this day. You would have bought them for $1.755 each. The purchase would have given you 5,698 shares without topping up along the way.
Looking at yesterday’s closing price, the CSR share price finished at $6.15. This means those 5,698 shares would be worth a staggering $35,042.70.
In percentage terms, the initial investment implies a return of about 250% or an average return of 13.36% per year.
On the other hand, if you had invested the same amount in the S&P/ASX 200 Index (ASX: XJO), this would have given you $17,322.89. Going back to percentages, this equates to a gain of roughly 73% or a yearly average of 5.63% across a 10-year period.
And the dividends?
Over the course of the last decade, CSR has made a total of 19 bi-annual dividend payments to shareholders.
Adding those 19 dividends payments gives us an amount of $2.086 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $11,886.02.
When putting both the initial investment gains and dividend distribution, an investor would have roughly $46,928.73.
As you can see, investing in CSR would have almost tripled what you would have gotten from investing in the ASX 200.
CSR share price summary
Glancing at the shorter term, the CSR share price has nudged up almost 5% in value in 2022.
However, when looking at this time last year, its shares have edged 6% higher.
CSR has a price-to-earnings (P/E) ratio of 20.43 and commands a market capitalisation of roughly $2.98 billion.
The post Guess what $10,000 worth of CSR (ASX:CSR) shares bought a decade ago looks like today appeared first on The Motley Fool Australia.
Should you invest $1,000 in CSR right now?
Before you consider CSR, 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 CSR wasn’t one of them.
The online investing service he’s run for over 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 January 13th 2022
More reading
- Could the CSR (ASX:CSR) share price be set for a boost?
- The CSR (ASX:CSR) share price has a dividend yield of 7%. Does this make it a buy?
- We see potential: Top broker sees more upside in (ASX:CSR) shares
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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