Invested $5,000 in BHP shares 5 years ago? Here’s how much passive income you’ve earned

The last five years have been good to the BHP Group Ltd (ASX: BHP) share price. In the meantime, the iron ore giant has been handing investors some pretty generous dividends.

Shares in the S&P/ASX 200 Index (ASX: XJO) icon were trading for just $30.81 in late January 2018.

Today, they’re swapping hands for $49.54 – approximately 61% higher than this time five years ago.

That means a $5,000 investment back then would be worth $8,025.48 today.

But what about the dividends? Let’s take a look at the total return – including dividends – a long-term investor has likely received from BHP shares.

All dividends offered by BHP shares since 2018

Here’re all the dividends BHP shareholders probably received over the last five years:

As the chart above shows, each BHP share has been the bearer of $15.31 in dividends since January 2018. That means a $5,000 investment in the stock back then has likely yielded $2,480.22 of passive income.

That also means our figurative investor has probably realised a return on investment (ROI) of around 110% in time, factoring in both share price gains and dividends.

And that could have been boosted if they had of compounded their dividends, perhaps using the ASX 200 company’s dividend reinvestment plan (DRP). Not to mention, the fully franked payouts might have provided extra benefits come tax time.

BHP shares currently boast a whopping 9.35% dividend yield.

The post Invested $5,000 in BHP shares 5 years ago? Here’s how much passive income you’ve earned appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Why is the BHP share price in the green today?
• How to generate $50,000 of passive income from BHP shares
• The BHP share price has had a stellar start to 2023. Is it too late to buy?
• Investing in ASX 200 copper shares? Here’s the outlook for the red metal in 2023

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 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 Scott Phillips.

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