As we enter a new decade it is interesting to look back over the last 10 years to see how much some of the companies have paid out to shareholders in dividends.
Here are three ASX companies that have each returned more than 100% of their 2010 opening share price just in dividends over the past decade.
Westpac Banking Corp (ASX: WBC)
Australia's oldest bank needs no introduction. Looking past the current fines and class action, Westpac has been a fantastic dividend payer over the past decade where it has returned a massive $17.62 to shareholders in the form of fully franked dividends. Including these franking credits, shareholders have received gross payments totalling $25.17.
Now with Westpac's share price opening in 2010 at $25.06, this means it has returned just over 100% in dividends during this period. Interestingly, however, with a current share price of just $24.40 holders of the shares would have seen a small drop in capital.
WAM Capital Ltd (ASX: WAM)
Another ASX share which would have paid out over 100% of its initial investment in dividends between 2010-2019 is the WAM Capital portfolio managed by Wilson Asset Management.
WAM Capital started the decade changing hands at just $1.295. Since then it has returned $1.285 worth of fully franked dividends, which grossed up makes it a whopping $1.836 per share. Therefore, in dividends alone, holders of WAM Capital shares over the last decade have received a return of 142% just from dividends. Pleasingly unlike Westpac shares, WAM Capital's share price has also appreciated 77% in this time to sell at $2.29 at the time of writing.
Telstra Corporation Ltd (ASX: TLS)
Last on my list is the telco and dividend giant Telstra. Telstra's share price started the decade trading at $3.31 and has since paid out grossed up dividends totalling $3.89 per share. This means that Telstra has returned, pre-tax, 117.5% to shareholders in dividends since the beginning of 2010. The Telstra share price has also seen a small capital appreciation of 10.5% in this time to trade at $3.66 today.
Foolish takeaway
Looking back, it's easy to see how a portfolio of dividend paying shares can be used to live off when you consider companies such as these. Each of these three companies has provided the majority of its shareholder return through dividends which can be spent at the discretion of the shareholder.
However, looking forward, since Telstra and Westpac have both recently cut their dividends and there are some question marks around WAM Capital's dividend affordability going forward, I would be looking for companies which are growing its dividends and may become the dividend stars of the next decade.
