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

The share price of Australia’s national telco Telstra Group Ltd (ASX: TLS) has struggled over the last decade. Fortunately for those invested in the stock, it’s paid out consistent dividends over that time.

If you had bought $1,000 of Telstra shares 10 years ago today, you likely would have snapped up 233 shares, paying $4.29 apiece.

Sadly, the Telstra share price has struggled since then.

The company’s stock is trading at $4.03 at the time of writing, 6.45% lower than it was in December 2012. That also leaves our figurative parcel with a value of around $938.99.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 57% over the last decade.

But could it be possible Telstra’s dividends have offset its share price’s poor performance? Let’s take a look.

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

Here are all the dividends offered by Telstra shares over the decade just been:

An investor who bought into Telstra shares 10 years ago likely would have received $2.365 in dividends for each security they held.

Thus, our 233 parcel of Telstra shares would have provided around $551.05 of passive income during that time.

That certainly offset the ASX 200 stock’s tumble. Combining its dividends and its share price’s fall leaves the telco giant returning 49% over the last 10 years.

It’s also likely that could have been compounded with the use of a dividend reinvestment plan (DRP).

Additionally, all Telstra’s dividends since the year 2000 have been fully franked. That means they might have provided extra benefits come tax time.

Telstra shares currently trade with a 3.35% dividend yield.

The post Bought $1,000 of Telstra 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 positions in and has recommended Telstra Group. 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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