Invested $5k in Coles shares in 2020? Here's how much dividend income you've earned

Coles stock has underperformed over the last three years. Have the dividends been worth it?

Key points
  • The Coles share price has lifted just 12% over the last three years to trade at $17.72 as of its previous close
  • Meanwhile, the ASX 200 has gained 19%
  • The supermarket stock has provided investors with $1.875 of dividends per share over that time

The Coles Group Ltd (ASX: COL) share price has underperformed the market over the last three years.

At this point of 2020, a $5,000 investment likely would have seen one boasting 317 shares in the supermarket operator, having paid $15.76 apiece.

That parcel would have been worth $5,617.24 as of the stock's most recent close. The Coles share price finished Tuesday's session at $17.72 – 12% higher than it was in June 2020.

Comparatively, the S&P/ASX 200 Index (ASX: XJO) has risen 19% in that time.

But share price gains aren't the only thing our figurative investment has provided over its life. The company has also been handing shareholders biannual dividends.

shopping trolley filled with coins representing asx retail share price.ce

Image source: Getty Images

All dividends paid to those holding Coles shares since 2020

Here are all the dividends Coles shares have provided over the last three years:

Coles dividends' pay dateTypeDividend amount
March 2023Interim36 cents
September 2022Final30 cents
March 2022Interim33 cents
September 2021Final28 cents
March 2021Interim33 cents
September 2020Final27.5 cents
Total: $1.875

As the above chart shows, each Coles share has provided $1.875 of dividend income. That leaves our $5,000 parcel having yielded $594.375 over its life.

Considering both the passive income and the capital gains provided by the supermarket stock, an investor has likely realised a 24% return on investment (ROI).

And that might have been bolstered if one had used their dividends to buy more shares, thereby compounding their returns. Perhaps, by participating in the company's dividend reinvestment plan (DRP).

Not to mention, all the dividends ever paid to those invested in Coles shares have been fully franked. Thus, they might have brought extra benefits to some shareholders come tax time.

At the time of writing, stock in the supermarket favourite is trading with a 3.7% dividend yield.

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 Coles 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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