Invested $12,000 in Whitehaven shares 5 years ago? Here's how much passive income you've earned

It's been a rocky – but fruitful – five years for those invested in this coal stock.

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Key points
  • The Whitehaven share price has gained more than 50% over the last five years
  • Meanwhile, the ASX 200 coal producer has been paying out dividends to shareholders
  • Each Whitehaven stock has yielded $1.585 of passive income in that time

Bought Whitehaven Coal Ltd (ASX: WHC) shares in 2018? You're likely pretty happy with your investment – now.

The coal stock has been on a roll as of late. However, the last five years haven't been all sunshine.

It plunged more than 80% between May 2018 and September 2020 alongside coal prices. But all that turned around as activities kicked off again in the wake of the worst of the COVID-19 pandemic.

The black rock's value surged again as Russia invaded Ukraine. Sanctions imposed on Russian coal and fears of a European energy crunch bolstered demand for coal, sending its price to a record high in 2022.

Of course, that benefited Whitehaven's earnings and shares (and dividends, as readers will soon see).

An investor buying $12,000 worth of the coal producer's stock in May 2018 likely would have walked away with 2,542 shares, paying $4.72 apiece.

Today, that holding would be worth $18,353. The Whitehaven share price has gained 53% over the last five years to reach $7.22.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen 20% in that time.

But what about the passive income offered to our figurative Whitehaven investor? Let's take a look.

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles.

Image source: Getty Images

All dividends paid to those holding Whitehaven shares since 2018

Here are all the dividends paid to those holding shares in Whitehaven over the last five years:

Whitehaven dividends' pay dateTypeDividend amount
March 2023Interim32 cents
September 2022Final40 cents
March 2022Interim8 cents
March 2020Interim1.5 cents
September 2019Final13 cents
September 2019Special17 cents
March 2019Interim15 cents
March 2019Special5 cents
September 2018Final14 cents
September 2018Special13 cents
Total: $1.585

As the chart above shows, each Whitehaven share has yielded $1.585 in dividends since May 2018.

That means our figurative parcel has likely brought in $4,029 of passive income over its life.

It also brings our total return on investment (ROI), considering both share price gains and dividends, to an impressive 86%.

Just imagine the returns one might have realised had they reinvested their dividends, thereby compounding their gains.

And the party isn't over for the passive income-providing stock. Whitehaven shares trade with a 9.97% dividend yield right now.

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 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 Scott Phillips.

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