If I’d spent $5,000 buying this ASX 200 coal share a year ago, here’s what I would have now

The shares of this S&P/ASX 200 Index (ASX: XJO) coal share have exploded in the past year.

New Hope Corporation Limited (ASX: NHC) shares have soared 195% from $2.13 at market close on 27 October 2021 to the current share price of $6.31 at market close on 27 October 2022.

So what would my investment would be worth now if I had invested in this ASX coal share at the start of the year?

Would a $5,000 investment be worth it?

Let’s imagine I had invested $5,000 in New Hope shares after market close on 27 October 2021.

This investment would have fetched me 2,347 shares with 89 cents left over.

Now, New Hope shares are worth $6.28, based on the share price at the time of writing.

If I’d invested $5,000 in New Hope shares a year ago, my investment would now be fetching $14,739.16.

However, New Hope also pays a dividend to investors. The company will be paying a fully franked final dividend of 31 cents per share and a special dividend of 25 cents per share on 8 November.

In May 2022, New Hope paid an interim dividend of 17 cents per share and a special cash dividend of 13 cents per share. All up, this is 86 cents worth of dividends.

So if I had fetched 2,347 shares a year ago, I would also be pocketing $2,018.42 from dividends including the payment due on 8 November.

Overall, if I had invested in this ASX coal share a year ago, I would be happy with my investment.

New Hope share price snapshot

New Hope shares have soared 183% in the year to date, while they have gained 17% in the past month.

For perspective, the ASX 200 Index has lost 8% year to date.

This ASX 200 coal share has a market capitalisation of $5.53 billion based on the current share price.

The post If I’d spent $5,000 buying this ASX 200 coal share a year ago, here’s what I would have now appeared first on The Motley Fool Australia.

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More reading

• Have ASX 200 high-yield dividend shares been a blessing or a curse in 2022?
• Why Austal, New Hope, Playside, and South32 shares are dropping
• Here are 3 ASX All Ords shares turning ex-dividend this week
• The ASX 200 is roaring higher so why is the New Hope share price sinking 7%?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Monica O’Shea 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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