If you’d bought $10,000 of Bendigo Bank shares 10 years ago, guess how much you’d have now

Have Bendigo Bank shares been a worthy investment over the long run?

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Key points

  • Bendigo Bank shares have lifted 40% in value over the past decade
  • When factoring in dividends, an initial investment of $10,000 would have reaped more than $22,000
  • The ASX has generated a yearly average return of 5.18% over the last decade compared to 3.45% for Bendigo Bank

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has travelled mostly sideways over the latter part of the decade.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has zoomed higher across the 10-year timeframe.

During March 2020, Bendigo Bank shares fell to a decade low of $5.32 after the pandemic shocked global markets. Since then, the company’s shares have almost recovered and are trading near their pre-COVID-19 highs.

Nonetheless, let’s take a look and see how much an investor would have made if they had invested $10,000 in Bendigo Bank shares a decade ago.

How much would your initial investment be worth now?

If you spent $10,000 on Bendigo Bank shares exactly 10 years ago, you would have picked them up for $7.55 each. The purchase would deliver approximately 1,324 shares without reinvesting the dividends received from the company.

Looking at yesterday’s closing price, the Bendigo Bank share price finished at $10.60. This means those 1,324 shares would be worth $14,034.40.

In percentage terms, the initial investment implies a return of 40.34% or a yearly average return of 3.45%. Comparing that to the ASX 200, the benchmark index has given back 5.18% over a 10-year period.

What about the dividends?

Over the course of the last decade, Bendigo Bank has made a total of 19 dividend payments from May 2012 to 2022. It’s worth noting that the last few dividend distributions were reduced due to the pandemic, affecting the company’s bottom line.

Adding those 19 dividend payments gives us an amount of $6.09 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $8,063.16.

When putting both the initial investment gains and dividend distribution, an investor would have a total amount of $22,097.56.

As you can see from above, the banks have always been well regarded as strong dividend payers to investors.

Bendigo Bank share price snapshot

Year to date, the Bendigo Bank share price has stormed 16% higher following a rollercoaster ride for investors.

The company’s shares were heavily sold off from August 2021 after reaching a 52-week high of $11.27. Since then, its shares hit a 52-week low of $8.43 in December 2021, before surging back up again.

Bendigo Bank presides a market capitalisation of roughly $5.99 billion, making it the seventh-largest bank by value.

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 positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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