Sunk $5,000 into Telstra shares 5 years ago? Here's how much passive income you've received

Has the ASX 200 icon really returned a total of more than 50% in five years?

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Key points

  • The Telstra share price has outperformed over the last five years
  • Meanwhile those holding its stock have likely received 86.5 cents of dividends per share
  • And those who want in on the company's next dividend but don't yet hold its stock better get in quick – Telstra trades ex-dividend this week

The Telstra Group Ltd (ASX: TLS) share price has outperformed the S&P/ASX 200 Index (ASX: XJO) over the last five years, gaining 28% in that time.

Back in February 2018, $5,000 could have bought an investor 1,529 of the telecommunications giant's shares for $3.27 apiece.

Today, that parcel would be worth $6,391.22. The Telstra share price last traded at $4.18.

For comparison, the ASX 200 has lifted 23% over the last five years.

But what about the dividends paid by the Aussie icon in that time? Let's add them to the equation.

All dividends paid to those holding Telstra shares since 2018

Here are all the dividends those invested in Telstra shares have received since February 2018:

Telstra dividends' pay dateTypeDividend amount
September 2022Final and special7.5 cents and 1 cent
April 2022Interim and special6 cents and 2 cents
September 2021Final and special5 cents and 3 cents
March 2021Interim and special5 cents and 3 cents
September 2020Final and special5 cents and 3 cents
March 2020Interim and special5 cents and 3 cents
September 2019Final and special5 cents and 3 cents
March 2019Interim and special5 cents and 3 cents
September 2018Final and special7.5 cents and 3.5 cents
March 2018Interim and special7.5 cents and 3.5 cents
Total: 86.5 cents

As the above chart shows, Telstra has paid out around 86.5 cents of dividends per share over the last five years. That leaves our figurative parcel having provided $1,322.585 of passive income.

Of those, much were special dividends. Those special dividends represented a portion of the company's net one-off NBN receipts.

That leaves the stock having posted a return on investment (ROI) of around 54% – not too shabby for just five years. Though, past performance isn't an indicator of future performance.

And that's before considering any potential benefits from franking credits or compounding.

Right now, Telstra shares trade with a 3.23% dividend yield.

Market watchers wanting to get on board before the company's next dividend better do so soon. Telstra recently posted an 8.5 cent per share payout and will trade ex-dividend on Wednesday.

Motley Fool contributor Brooke Cooper 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 Telstra Group. 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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