The last five years have been the best of times and the worst of times for the Magellan Financial Group Ltd (ASX: MFG) share price. The stock leapt to an all-time high of around $65.50 in early 2020 before plummeting to a recent low of $7.52 earlier this year.
But how has the investment played out for those who bought into the stock in May 2018?
An $11,000 investment in the funds management business back then likely would have seen a buyer walk away with 515 stocks, paying $21.33 apiece.
Today, that parcel would be worth just $4,392.95. The Magellan share price last traded at $8.53, marking a 60% tumble over the last five years.
For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen 19% in that time.
But have the dividends on offer from Magellan shares helped numb the pain brought by the stock's tumble? Let's take a look.
Image source: Getty Images
All dividends paid to those holding Magellan shares since 2018
Here is all the passive income offered to those holding a single Magellan share since this time five years ago:
| Magellan dividend pay date | Type | Dividend amount |
| March 2023 | Interim | 46.9 cents |
| September 2022 | Final | 68.9 cents |
| March 2022 | Interim | $1.101 |
| September 2021 | Final | $1.141 |
| February 2021 | Interim | 97.1 cents |
| August 2020 | Final | $1.22 |
| February 2020 | Interim | 92.9 cents |
| August 2019 | Final | $1.114 |
| February 2019 | Interim | 73.8 cents |
| August 2018 | Final | 90 cents |
| Total: | $9.272 |
As readers can see, each Magellan share has yielded $9.272 of dividends since May 2018.
That means our figurative investment has provided $4,775.08 of passive income over its life, likely reducing the sting felt as a result of the stock's suffering.
Indeed, if we consider those dividends and the stock's whopping fall, the return on investment (ROI) from our imagined $11,000 purchase comes out to a loss of nearly 16.5% – a far better outcome than it otherwise could have been.
Not to mention, all the dividends paid by the ASX 200 company in that time have been at least partially franked. That means they might have brought additional benefits for some shareholders at tax time.
And there's another silver lining to the stock's tumble. Right now, Magellan shares are trading with an outwardly impressive 13.6% dividend yield.
