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

The last 10 years have been good to the Wesfarmers Ltd (ASX: WES) share price.

The S&P/ASX 200 Index (ASX: XJO) retailer is behind such names as Kmart, Bunnings, and Officeworks. In past years, the company was also charged with Coles Group Ltd (ASX: COL). The now near-$23 billion supermarket operator was spun-out of Wesfarmers in 2018.

Long-term investors have seen plenty of shakeups at the retail giant over the last decade, and they’ve been rewarded handsomely.

If you bought $1,000 of Wesfarmers shares in December 2012, you would have paid $26.56 apiece and walked away with 37 shares.

The Wesfarmers share price now trades at $47.66 – 79% higher than it was around 10 years ago. That gives our figurative parcel a value of $1,763.42 today.

But what kind of return can long-term shareholders enjoy when we factor in the company’s dividends? Let’s take a look.

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

Here are all the dividends handed to those invested in Wesfarmers shares over the last decade: 

Did you buy Wesfarmers shares in December 2012? If you did, you’ve likely received $20.43 per share in dividends over the life of your investment.

That means a $1,000 investment 10 years ago has yielded $755.91 in dividends.

It also means, between the stock’s capital gains and dividends, our figurative investor may have seen a whopping 152% return on their investment.

And that’s before considering further gains potentially realised through compounding using the company’s dividend reinvestment plan (DRP).

Additionally, all dividends paid out by the retailer in that time have been fully franked and, thus, could have brought extra benefits at tax time.

Right now, Wesfarmers shares trade with a 3.77% dividend yield.

The post Bought $1,000 of Wesfarmers 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 Coles Group and Wesfarmers. 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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