If you’d bought $10,000 of BHP shares 5 years ago, here’s what you’d have now

The BHP Group Ltd (ASX: BHP) share price has registered strong gains over the past few years. This comes despite the world’s largest miner suffering a few hiccups along the way, such as the COVID-19 pandemic.

Nonetheless, BHP shares have created wealth for investors who bought and held their shares over the long term.

Below, we calculate how much you would have made If you bought $10,000 worth of BHP shares 5 years ago.

What’s happening with BHP in 2022?

Since the start of the year, the BHP share price has posted a return of almost 25%.

The accent of iron ore prices is providing a strong support base for the company’s margins. Regarded as a key commodity in BHP’s portfolio, this is particularly important given a majority of its revenues come from the steelmaking ingredient.

Currently, the price of iron ore is fetching for US$151.50 a tonne, up 30.64% in the past 4 months.

It’s worth noting that in the financial year ending 31 December 2021, iron ore accounted for more than half of the total group revenue from BHP.

So, how much would you have if you invested $10,000 from 5 years ago?

If you invested $10,000 into BHP shares in 2017, you would have picked them up for approximately $25.73 a piece. This equates to about 388 shares without topping up along the way during the down periods.

Fast-forward to today, the current BHP share price is $51.45. This means those 388 shares would be worth $19,962.60.

Not a bad effort for almost doubling your initial investment in one of the ASX’s most safe and reliable companies. 

When looking at percentage terms, this implies an average yearly return of 14.83%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has given back roughly 4.89% over the same timeframe.

What about the dividends?

Over the course of the last five years, BHP has made a total of 12 dividend payments from March 2017 to March 2022.

Adding those 12 dividends payments gives us an amount of $13.8421 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $5,370.73.

When putting both the initial investment gains and dividend distribution, an investor would have $25,333.33 worth of BHP shares.

In comparison, investing the same amount in the ASX 200 would have netted you a total figure of $12,649.63.

BHP share price summary

Over the past 12 months, BHP shares have stormed 10% higher following a rollercoaster ride for investors.

The company’s shares were heavily sold off in August 2021 after reaching an all-time high of $54.55. Since then, its shares hit a 52-week low of $35.56, before surging back up again near its record high.

Based on today’s price, BHP presides a market capitalisation of roughly $261.62 billion and has approximately 5.06 billion shares outstanding.

The post If you’d bought $10,000 of BHP shares 5 years ago, here’s what you’d have now appeared first on The Motley Fool Australia.

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• 2 buy-rated ASX 200 dividend shares analysts are recommending
• What sent ASX mining shares flaming higher in March?

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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