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.
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.