If I'd sunk $1,000 into Westpac Banking Corp (ASX: WBC) shares on the first trading day of 2022, I'd be a happy investor today. Here's how my figurative investment in the S&P/ASX 200 Index (ASX: XJO) big four bank would have played out for me.
Westpac shares prove a winner
Assuming I'd invested $1,000 in Westpac stock on 4 January 2022, I would have walked away with 46 shares, paying $21.66 apiece.
And for a while, that buy would have been a notably good one. The Westpac share price launched to a 52-week high of $24.67 in April – leaving my parcel with a total value of $1,134.82.
Sadly, that high didn't last long. The bank stock plummeted in June amid a 0.5% rate hike executed by the Reserve Bank of Australia.
On 17 June, it reached its lowest point of the year, trading at $18.80. At that point, my initial investment would have held a value of $864.80.
Luckily, the Westpac share price has since recovered. Right now, the bank stock is trading at $23.93. Thus, my figurative 46 shares would be worth $1,100.78.
That's a respectable 11-month return, particularly when considering the ASX 200 has dumped 6% so far this year. And this is before considering dividends.
What about dividends?
Westpac has declared two dividends in 2022. The company's interim dividend came in at 61 cents and it recently revealed a 64-cent final dividend.
That means my 46 shares would have garnered me $57.50 in passive income this year. Additionally, both offerings were fully franked, meaning they could bring about tax benefits.
What might the future hold for Westpac shares?
Of course, past performance doesn't guarantee future returns. However, the future looks bright for Westpac shares if you ask these top brokers.
Morgans tips the stock to rise to $25.80, slapping it with an add rating. Meanwhile, Goldman Sachs has gone one further, dubbing it a conviction buy with a $27.60 price target.
Both brokers also expect the bank to grow its dividends over the coming years.
Thus, if I were to have bought Westpac shares in early 2022, I'd likely be holding tight to my investment today.
