The Macquarie Group Ltd (ASX: MQG) share price has rocketed over the past decade, up almost 600%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up around 68% over the same timeframe.
During January 2022, Macquarie shares reached an all-time high of $217.32 before freefalling thereafter. While the bank’s shares have somewhat recovered, they are still some way off moving again into uncharted territory.
Nonetheless, let’s wind the clock back and see how much an investor would have made if they had invested $10,000 in Macquarie shares a decade ago.
How much would your initial investment be worth now?
If you spent $10,000 on Macquarie shares exactly 10 years ago, you would have picked them up for $27.07 apiece. The purchase would deliver approximately 369 shares without reinvesting the dividends.
Looking at today’s closing price, the Macquarie share price finished at $189.44. This means those 369 shares would be worth $69,903.36 (369 shares x $189.44).
In percentage terms, the initial investment implies a yearly average return of 21.46%. Comparing that to the ASX 200, the benchmark index has given back 5.19% over a 10-year period.
And the dividends?
Over the course of the last decade, Macquarie has made a total of 20 dividend payments from 2012 to 2022. Its most recent dividend distributions were significantly reduced due to the pandemic severely affecting its operations and bottom line.
Adding those 20 dividend payments gives us an amount of $40.07 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $14,785.83 (369 shares x 40.07).
When putting both the initial investment gains and dividend distribution, an investor would have made $84,689.19.
Macquarie share price snapshot
Over the past 12 months, the Macquarie share price has travelled 25% higher but is down almost 8% year to date.
Macquarie presides a market capitalisation of roughly $72.6 billion and has more than 383 million shares on its registry.
The post If you invested $10,000 in Macquarie (ASX:MQG) shares a decade ago, here’s what it would be worth now appeared first on The Motley Fool Australia.
Should you invest $1,000 in Macquarie right now?
Before you consider Macquarie, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Macquarie wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
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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 recommended Macquarie Group Limited. 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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