Guess what $10,000 worth of CSR (ASX:CSR) shares bought a decade ago looks like today

Investing in CSR shares 10 years ago would have reaped some serious benefits.

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Key points
  • CSR shares have surged 250% in value over the past decade without factoring in the dividends 
  • An initial investment of $10,00 would have reaped almost $47,000 when including the dividend payments 
  • The ASX has generated a yearly average return of 5.63% over the last decade compared to 13.36% for CSR 

Despite achieving mediocre gains in 2022, the CSR Limited (ASX: CSR) share price has rocketed higher over the long term.

Below, we take a look and see how much an investor would have made if they had invested $10,000 in CSR shares 10 years ago.

Calculator on top of Australian 4100 notes and next to Australian gold coins.

Image source: Getty Images

How much would your initial investment be worth now?

Let's say you spent $10,000 on CSR shares 10 years ago on this day. You would have bought them for $1.755 each. The purchase would have given you 5,698 shares without topping up along the way.

Looking at yesterday's closing price, the CSR share price finished at $6.15. This means those 5,698 shares would be worth a staggering $35,042.70.

In percentage terms, the initial investment implies a return of about 250% or an average return of 13.36% per year.

On the other hand, if you had invested the same amount in the S&P/ASX 200 Index (ASX: XJO), this would have given you $17,322.89. Going back to percentages, this equates to a gain of roughly 73% or a yearly average of 5.63% across a 10-year period.

And the dividends?

Over the course of the last decade, CSR has made a total of 19 bi-annual dividend payments to shareholders.

Adding those 19 dividends payments gives us an amount of $2.086 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $11,886.02.

When putting both the initial investment gains and dividend distribution, an investor would have roughly $46,928.73.

As you can see, investing in CSR would have almost tripled what you would have gotten from investing in the ASX 200.

CSR share price summary

Glancing at the shorter term, the CSR share price has nudged up almost 5% in value in 2022.

However, when looking at this time last year, its shares have edged 6% higher.

CSR has a price-to-earnings (P/E) ratio of 20.43 and commands a market capitalisation of roughly $2.98 billion.

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 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 Bruce Jackson.

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