Bought $1,000 of South32 shares in 2015? Here’s how much passive income you’ve made

Miner holding cash which represents dividends.Miner holding cash which represents dividends.

Did you invest in South32 Ltd (ASX: S32) shares when the company split from BHP Group Ltd (ASX: BHP) to float on the ASX in 2015? If you did, you’ve nearly doubled your money.

South32 was spun out of the iron ore giant in 2015, taking many of its alumina, aluminium, coal, manganese, nickel, silver, lead, and zinc assets with it.

As part of the demerger, BHP investors were offered one share in South32 for every share they held in BHP.

South32’s first day on the ASX saw its stock closing at $2.05. Nearly eight years later, the S&P/ASX 200 Index (ASX: XJO) mining share was trading for $4.58 apiece as of yesterday’s close – representing a 123% gain.

That means $1,000 invested in May 2015 would today be worth around $2,230.46.

But what about the dividends handed out by the now-mining giant over its listed life? Let’s take a look.

All dividends offered to those holding South32 shares

Here are all the dividends paid to those invested in South32 shares since it listed, rounded to the nearest tenth of a cent:

Suncorp dividends’ pay date Type Dividend amount
October 2022 Final and special 20.7 cents and 4.4 cents
April 2022 Interim 11.9 cents
October 2021 Final and special 4.8 cents and 2.7 cents
April 2021 Interim 1.8 cents
October 2020 Final 1.4 cents
April 2020 Interim 3.3 cents
October 2019 Final 4.1 cents
April 2019 Interim 9.6 cents
October 2018 Final 8.7 cents
April 2018 Interim 9 cents
October 2017 Final 8 cents
April 2017 Interim 4.8 cents
October 2016 Final 1.3 cents
Total:   96.5 cents

As readers can see, each South32 share has yielded 69.5 cents of dividends over its life. That means our figurative $1,000 parcel has likely brought in $338.465 of passive income.

Considering both the payouts and the South32 share price’s gains, investors have seen a return on investment (ROI) of 157%.

And that’s before considering the franking credits that have come with nearly all the ASX 200 company’s dividends. They could have brought tax benefits for some investors.

Further, reinvesting the payouts could have seen an investor compound their returns further.

South32 shares currently trade with a 7.1% dividend yield.

Looking forward, the company’s next dividend will be worth 4.9 US cents and will be paid in early April.

The post Bought $1,000 of South32 shares in 2015? Here’s how much passive income you’ve made appeared first on The Motley Fool Australia.

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More reading

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.

from The Motley Fool Australia

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