If I could get my time machine to work, would I be better off buying $10,000 worth of Westpac Banking Corp (ASX: WBC) or National Australia Bank Ltd (ASX: NAB) shares on 8 September 2023?
Now both S&P/ASX 200 Index (ASX: XJO) bank stocks have outperformed the 24.4% gains posted by the ASX 200 over the last three years.
And, once we add back in there twice annual dividend payouts, they’ve also both beaten the 37.9% gains delivered by the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date.
But which of these big four Aussie banks has led the charge?
Investing $10,000 into NAB shares
Three years ago, I could have picked up NAB shares for $28.65.
Meaning my $10,000 would have gotten me 349 shares in the big four Aussie bank.
As we head into the Wednesday lunch hour today, those same shares are changing hands for $38.21, up 33.4% in three years.
So, what about those dividends?
Well, if I owned the ASX 200 bank stock for the last three years I would have received six fully-franked dividend payments, totalling $5.08 a share.
If we add that back into today’s share price, then the accumulated value of the NAB shares I bought for $28.65 three years ago is now worth $43.29. And the 349 shares I bought for $10,000 are worth an accumulated $15,108.
Not bad.
But what about Westpac?
Buying Westpac shares in September 2023
On 8 September 2023, Westpac shares closed the day trading for $21.17. So, for $10,000, I could have bought 472 Westpac shares.
At time of writing, shares in the ASX 200 bank stock are swapping hands for $34.23 each, up 61.7% in three years.
Now let’s add that passive income back in.
If I owned Westpac shares for the last three years, I would have received the last six fully-franked dividend payments, totalling $4.68 a share.
Adding that back into the current share price, the accumulated value of the Westpac shares I bought three years ago is now worth $38.91. And the 472 shares I bought for $10,000 are worth an accumulated $18,366.
So, while both ASX 200 bank stocks have handily outperformed the benchmark indexes over the last three years, Westpac shares have gained significantly more than NAB shares.
Now, if I can only get that time machine working!
The post $10,000 invested in Westpac and NAB shares 3 years ago is now worth⦠appeared first on The Motley Fool Australia.
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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.