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.

| More on:
A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on Dividend Investing

Person pointing at an increasing blue graph which represents a rising share price.
Dividend Investing

Guess which little-known ASX share is soaring 15% on special dividend news

Investors are paying more attention to dividend stocks as the pace of capital gains looks to slow amid rising interest…

Read more »

Adult man wearing a black suit and necktie calculating via old fashioned calculator, surrounded by newspapers.
Dividend Investing

Everything you need to know about the latest AGL dividend

The ASX 200 energy giant has posted its lowest regular dividend since listing.

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
Dividend Investing

Everything you need to know about the latest Newcrest dividend

The ASX 200 gold and copper producer has halved its final dividend year-on-year.

Read more »

Dividend Investing

Brokers name 2 ASX dividend shares to buy

Brokers have named these dividend shares as buys...

Read more »

A woman holds out a handful of Australian dollars.
Dividend Investing

Everything you need to know about the latest Transurban dividend

How big is Transurban's new dividend yield?

Read more »

Happy smiling young woman drinking red wine whilst standing amongst the grapevines in a vineyard as the Treasury Wines share price rises today
Dividend Investing

Treasury Wine share price defies market slump. Could it be the dividend boost?

The winemaker just lifted its dividend. Here are the details.

Read more »

A man wearing a blue jumper and a hat looks at his laptop with a distressed and fearful look on his face as he reads about the Core Lithium share price falling 30% in a month
Dividend Investing

Here’s why the IAG share price is slumping today

The insurer's shares are treading lower for a reason today...

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Dividend Investing

Here’s the BHP dividend forecast through to 2026

Where is the BHP dividend heading in the coming years?

Read more »