Bought $1,000 of IAG shares 10 years ago? Here’s how much dividend income you’ve pocketed

The Insurance Australia Group Ltd (ASX: IAG) share price has outperformed the market over the last 12 months, gaining 6.9% in that time. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has slipped 1.2%.

However, zooming out, the stock’s long-term performance isn’t so strong. The IAG share price has fallen around 5.5% over the last 10 years.

If an investor were to have bought $1,000 worth of the insurance stock in January 2013, they likely would have walked away with 196 shares, paying $5.10 apiece.  

Today, that parcel would be worth $944.72. The IAG share price is currently $4.82.

For comparison, the ASX 200 has gained around 54% over the last decade.

But how has our figurative investment performed when we factor in dividends offered by IAG in that time? Let’s take a look.

How much have IAG shares paid in dividends in 10 years?

Here are all the dividends IAG shares have paid since January 2013:

As per the chart above, IAG shares have each offered investors $2.855 in dividends over the last decade.

That means our 196-share parcel would likely have paid out $559.58 in dividends – leaving our figurative investor in the green.

Indeed, factoring in both dividends and share price movements, IAG stock boasts a return on investment (ROI) of 50% over the 10 years just been.

On top of that, many of the dividends offered by the company in that time have been fully franked. Thus, they could have brought additional benefits for some shareholders at tax time.

IAG shares currently trade with a 2.28% dividend yield.

The post Bought $1,000 of IAG shares 10 years ago? Here’s how much dividend income you’ve pocketed appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 positions in and has recommended Insurance Australia Group. 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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