Sunk $5,000 into Telstra shares 5 years ago? Here’s how much passive income you’ve received

A woman standing in a blue shirt smiles as she uses her mobile phone to text message someoneA woman standing in a blue shirt smiles as she uses her mobile phone to text message someone

The Telstra Group Ltd (ASX: TLS) share price has outperformed the S&P/ASX 200 Index (ASX: XJO) over the last five years, gaining 28% in that time.

Back in February 2018, $5,000 could have bought an investor 1,529 of the telecommunications giant’s shares for $3.27 apiece.

Today, that parcel would be worth $6,391.22. The Telstra share price last traded at $4.18.

For comparison, the ASX 200 has lifted 23% over the last five years.

But what about the dividends paid by the Aussie icon in that time? Let’s add them to the equation.

All dividends paid to those holding Telstra shares since 2018

Here are all the dividends those invested in Telstra shares have received since February 2018:

Telstra dividends’ pay date Type Dividend amount
September 2022 Final and special 7.5 cents and 1 cent
April 2022 Interim and special 6 cents and 2 cents
September 2021 Final and special 5 cents and 3 cents
March 2021 Interim and special 5 cents and 3 cents
September 2020 Final and special 5 cents and 3 cents
March 2020 Interim and special 5 cents and 3 cents
September 2019 Final and special 5 cents and 3 cents
March 2019 Interim and special 5 cents and 3 cents
September 2018 Final and special 7.5 cents and 3.5 cents
March 2018 Interim and special 7.5 cents and 3.5 cents
Total:   86.5 cents

As the above chart shows, Telstra has paid out around 86.5 cents of dividends per share over the last five years. That leaves our figurative parcel having provided $1,322.585 of passive income.

Of those, much were special dividends. Those special dividends represented a portion of the company’s net one-off NBN receipts.

That leaves the stock having posted a return on investment (ROI) of around 54% – not too shabby for just five years. Though, past performance isn’t an indicator of future performance.

And that’s before considering any potential benefits from franking credits or compounding.

Right now, Telstra shares trade with a 3.23% dividend yield.

Market watchers wanting to get on board before the company’s next dividend better do so soon. Telstra recently posted an 8.5 cent per share payout and will trade ex-dividend on Wednesday.

The post Sunk $5,000 into Telstra shares 5 years ago? Here’s how much passive 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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