Here's what $10,000 invested in CSL shares 5 years ago looks like now

Investing in CSL shares five years ago would have reaped a tidy profit.

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Key points

  • CSL shares have surged 112% in value over the past five years, without factoring in the dividends 
  • An initial investment of $10,000 would have returned more than $22,300 when including the dividend payments
  • The ASX 200 has generated a yearly average return of 5.02% over a five-year period when compared to CSL's 16.23%

Regardless of travelling lower in 2022, the CSL Limited (ASX: CSL) share price has rocketed over the past five years.

In fact, the biotherapeutics company's shares have more than doubled in value, representing stable long-term growth.

In February 2020, CSL shares reached an all-time high of $342.75 before retreating. While the company's shares have been rangebound ever since, they are still some way off reaching uncharted territory.

Nonetheless, let's rewind the clock and see how much an investor would have made if they had invested $10,000 in CSL shares five years ago.

How much would your initial investment be worth now?

If you spent $10,000 on CSL shares exactly five years ago, you would have bought them for $126.49 each. The long-term investment would have given you approximately 79 shares without reinvesting the dividends.

At the time of writing, CSL shares are swapping hands for $268.53.

That means that those 79 shares would be worth $21,213.87 right now.

In percentage terms, the initial investment implies a return of about 112% or an average return of 16.23% per year.

On the other hand, if you had invested the same amount in the S&P/ASX 200 Index (ASX: XJO), it would be worth $12,833.38.

Going back to percentages, this equates to a gain of roughly 28% or a yearly average of 5.02% across a five-year period.

What about CSL's dividends?

From 2017 to halfway through 2022, CSL has made a total of 11 biannual dividend payments to shareholders.

Its most recent dividend distribution was its second-highest interim dividend declared by the board, despite COVID-19 disruptions.

Adding those 11 dividend payments gives us a total amount of $13.99 per share. Calculating the number of shares owned against the dividend payments gives us a figure of $1,105.21.

When putting both the initial investment gains and dividend distribution, an investor would have roughly $22,319.08 or $12,319.08 profit.

As you can see, investing in CSL would have quadrupled what you would have gotten from investing in the ASX 200 ($12,319.08 vs. $2,833.38).

CSL share price snapshot

Over the past 12 months, the CSL share price has travelled 2% higher but is down almost 8% year to date.

CSL has a price-to-earnings (P/E) ratio of 33.54 and commands a market capitalisation of roughly $129.12 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. owns and has recommended CSL Ltd. 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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