If you stocked up on $5,000 of CBA shares 5 years ago, here’s how much dividend income you’ve made

The Commonwealth Bank of Australia (ASX: CBA) share price has put on a stellar performance over the last five years.

It’s gained 45.8% in that time. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has lifted just 29%.

Today, CBA shares trade for $111.15 each – mere cents off their all-time high of $111.43 hit on Friday.

Glancing to the past, however, an investor could have bought 65 CBA shares for $5,000 in February 2018, paying $76.25 apiece and walking away with nearly $44 in change.

That holding would now be worth $7,224.75. But what about the big four bank’s dividends?

Let’s consider the total return those invested in the ASX 200 bank share have likely seen over the last five years.

All the dividends CBA shares have offered since 2018

Here are all the dividends on offer from CBA shares over the last half-decade:

As the chart above shows, CBA shares have each yielded $18.95 in passive income since early 2018.

That means a 65-share-strong parcel probably would have handed an investor $1,231.75 in dividends over that time – bumping the potential return on investment (ROI) to a notable 70.6%.

And that’s before we consider the compounding benefits those dividends may have brought had they been reinvested, perhaps through the bank’s dividend reinvestment plan (DRP).

Not to mention, the franking credits attached to each of the bank’s offerings during that time. Certainly, they may have brought some shareholders extra benefits come tax time.

Right now, CBA shares trade with a 3.46% dividend yield.

The post If you stocked up on $5,000 of CBA shares 5 years ago, here’s how much dividend income you’ve made appeared first on The Motley Fool Australia.

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More reading

• 3 of the safest ASX 200 dividend stocks in Australia
• Investing in ASX 200 dividend shares? Here’s what to look for in 2023: fund manager
• ASX 200 investors are selling off CBA shares! What should I do?
• Top ASX dividend shares to buy in February 2023
• 5 ASX 200 shares smashing new 52-week highs on Wednesday

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 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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