Regardless of travelling sideways in 2022, the Cochlear Ltd (ASX: COH) share price has rocketed throughout the past decade.
In fact, the hearing solutions company’s shares have almost quadrupled in value, representing strong long-term growth.
During August 2021, Cochlear shares reached an all-time high of $257.76 before travelling lower soon afterwards. While the company’s shares have somewhat recovered, they are still a tad off moving again into uncharted territory for now.
Nonetheless, let’s wind the clock back and see how much you would have made if you’d invested $10,000 in Cochlear shares 10 years ago.
How much would your initial investment be worth now?
If you’d spent $10,000 on Cochlear shares this time in 2012, you would have bought them up for $61.86 each. The long-term investment would have given you approximately 161 shares without reinvesting the dividends or topping up along the way.
Looking at yesterday’s market close, the Cochlear share price finished at $219.33 apiece.
This means that those 161 shares would be worth $35,312.13 right now.
In percentage terms, the initial investment implies a return of about 253% or an average return of 13.45% per year.
On the other hand, if you’d invested the same amount into an ASX 200 index-tracking fund, this would have netted you $17,577.82.
Going back to percentages, this represents a gain of 75% or a yearly average of 5.80% across a 10-year period.
What about Cochlear’s dividends?
From 2012 to halfway through 2022, Cochlear has made a total of 19 bi-annual dividend payments to shareholders.
Its most recent dividend distribution was its third highest interim dividend declared by the board despite COVID-19 disruptions.
Adding those 19 dividend payments gives us a total amount of $25.21 per share. Calculating the number of shares owned against the dividend payments gives us a figure of $4,058.81.
When putting both the initial investment gains and dividend distribution, you would have roughly $39,370.94 or $29,370.94 profit.
As you can see, investing in Cochlear shares would have almost quadrupled what you would have gotten from investing in an ASX 200 index-tracking fund ($29,370.94 vs. $7,577.82).
Cochlear share price snapshot
Over the past 12 months, the Cochlear share price has edged 1% higher and is up around 1.5% year to date.
Cochlear has a price-to-earnings (P/E) ratio of 54.64 and commands a market capitalisation of roughly $14.19 billion.
The post Think Cochlear shares are boring? That might change when you see what $10,000 invested 10 years ago is worth now appeared first on The Motley Fool Australia.
Should you invest $1,000 in Cochlear right now?
Before you consider Cochlear, 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 Cochlear wasn’t one of them.
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*Returns as of January 13th 2022
More reading
- Down 8% in a week, is the Cochlear share price in the buy zone?
- Analysts say these top ASX growth shares are buys
- Broker says the Cochlear share price is in the buy zone following Oticon acquisition
- Top brokers name 3 ASX shares to buy today
- 2 medical tech ASX shares Morgans loves right now
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 positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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