Fancy investing in an ASX All Ords stock that would have seen your investment balloon by an eye-watering 292% in just three years?
Me too!
After all, the All Ordinaries Index (ASX: XAO) returned a far more ordinary 11.5% (excluding dividend payouts) over this same period.
The star performer in question is ASX coal miner Yancoal Australia Ltd (ASX: YAL).
Here’s how the company would have grown a $9,000 investment three years ago into a whopping $35,234 today.
ASX All Ords stock delivers the goods
Three years ago, in mid-May 2021, you could have bought the ASX All Ords stock for $2.01 a share.
Meaning your $9,000 investment would have netted you 4,477 Yancoal shares and a bit of pocket change.
By the end of 2021, your ASX investment would already be up some 30%, while you probably spent that pocket change.
And things really began to heat up in 2022.
That year, thermal coal prices more than doubled to reach all-time highs following Russia’s invasion of Ukraine. The Yancoal share price also notch its own record highs.
Although the coal price has tumbled more than 65% since those record highs, the Yancoal share price has held up much better, as the ASX All Ords share continues to be a cash-generating machine.
In afternoon trade today, Yancoal shares are swapping hands for $5.95 apiece.
So, the 4,477 shares you bought three years ago would be worth a rounded $26,460 today. Which, you might be thinking, is well below the headline-grabbing $35,234 mentioned above.
What gives?
The dividends, of course!
Don’t forget the passive income
Over the past three years the ASX All Ords stock has not only seen its share price rocket, it’s also delivered shareholders some seriously outsized passive income.
If you’d bought shares in May 2021, you have been eligible to receive the past three dividend payouts, all but one of which were fully franked.
Those four payouts work out to $1.92 per share.
So, if we add that into the current Yancoal share price of $5.95, the accumulated value of this ASX All Ords stock over the past three years works out to $7.87 per share.
Meaning your 4,477 shares would have netted you $35,234 by today, with some potential tax benefits from those franking credits.
Boom!
Now, as always, before investing in Yancoal shares or any other ASX stock, do your own research or seek expert advice.
The post How a $9k investment in this ASX All Ords stock ballooned to $35,234 in just 3 years! appeared first on The Motley Fool Australia.
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More reading
- Here’s how the ASX 200 market sectors stacked up last week
- Up 9% in a month, this ASX 300 stock is my top pick for May
- ASX coal shares higher despite major superannuation fund walking away
- My top ASX dividend pick for 2024 is a passive income powerhouse
- 2 ASX passive income shares paying 8% and 13% yields
Motley Fool contributor Bernd Struben 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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