Bought $1,000 of Westpac shares 10 years ago? Here’s how much dividend income you’ve received

The last 10 years have been rough on the Westpac Banking Corp (ASX: WBC) share price. Fortunately, the banking favourite has been offering investors dividends over the period. But have they been enough to offset the stock’s tumble?

If an investor were to have bought $1,000 of Westpac shares in December 2012, they likely would have walked away with 38 shares, paying $25.98 apiece, and around $12 change.

Today, the stock in Australia’s oldest bank is trading at $23.44 – marking a 9.77% fall over the last 10 years. That leaves out a figurative parcel with a value of $890.72.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 57% in that time.

So, have Westpac’s dividends made up for its share price’s poor performance over the decade? Let’s take a look.

How much have Westpac shares paid in dividends in 10 years?

Here are all the dividends Westpac has offered shareholders over the last 10 years:

All up, Westpac has provided $16.59 of dividends per share over the last 10 years.

That means a $1,000 investment in December 2012 would have yielded $630.42 of passive income in the years since.

Considering the bank’s share price’s 9.77% fall alongside its biannual offerings, our imagined parcel would have returned around 54% over its life.

Of course, that return might have been amplified with the use of a dividend reinvestment plan (DRP), allowing an investor to compound their returns.

Additionally, all dividends handed out by Westpac since 2000 have been fully franked. That means they may have brought extra benefits at tax time.

Thus, Westpac’s dividends have offset its share price’s poor performance over the last 10 years. On top of that, the payouts see the stock’s performance nearly on par with that of the ASX 200 over that period.

The big bank currently trades with a 5.3% dividend yield.  

The post Bought $1,000 of Westpac shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 recommended Westpac Banking. 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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