The Transurban Group (ASX: TCL) share price has travelled sideways over the course of the last few years.
COVID-19 headwinds impacted traffic levels as state government-mandated restrictions were enforced Australia-wide. This led Transurban shares to falter while management focused on navigating the business through the pandemic.
Below, we calculate if the dividends have been worth the wait if a shareholder made an investment 3 years ago.
What if you had invested $10,000 in Transurban shares 3 years ago?
If you had invested $10,000 in Transurban shares on this day 3 years ago, you would have bought them for around $12.53 each. This would have given you approximately 798 shares without factoring in any dividend reinvestments over the years.
Fast-forward to today, the current Transurban share price is $12.73. This means those 798 shares would now be worth around $10,158.54 (798 shares x $12.73). When considering percentage terms, this implies an upside of 1.59%.
In contrast, the ASX 200 has returned a yearly average of 4.75% to shareholders in the past 3 years.
And the dividends?
Over the course of the last 3 years, Transurban has made a total of 6 bi-annual dividend payments from June 2019 to 2022.
Adding those 6 dividends payments gives us an amount of $1.285 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $1,025.43 (798 shares x $1.285).
When putting both the initial investment gains and dividend distribution, an investor would have made roughly $11,183.97.
In comparison, investing the same amount in the ASX 200 would have netted you a total figure of $11,493.76.
Transurban share price snapshot
Over the past 12 months, the Transurban share price has shed around 1%, driven by poor trading conditions.
Its shares hit a 52-week low of $12.03 in January, before finding support around the mid $12 mark.
Based on the current share price, Transurban commands a market capitalisation of around $39.09 billion.
The post The Transurban (ASX:TCL) share price has gained under 2% in 3 years. Have the dividends been worth the wait? appeared first on The Motley Fool Australia.
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More reading
- Why this broker says the Transurban (ASX:TCL) share price can drive 14% higher
- Top brokers name 3 ASX shares to buy next week
- Why brokers rate these ASX 200 dividend shares as buys
- Which new investments are predicted to help the AFIC (ASX:AFI) share price and dividends?
- Just banked the Transurban (ASX:TCL) dividend? Here’s what you need to know
Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.
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