How a $9k investment in this ASX All Ords stock ballooned to $35,234 in just 3 years!

Shares in the ASX All Ords stock have rocketed even as it's paid out market-beating dividends.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published May 17, 2024 2:36 pm AEST

Fancy investing in an ASX All Ords stock that would have seen your investment balloon by an eye-watering 292% in just three years?

Me too!

After all, the All Ordinaries Index (ASX: XAO) returned a far more ordinary 11.5% (excluding dividend payouts) over this same period.

The star performer in question is ASX coal miner Yancoal Australia Ltd (ASX: YAL).

Here's how the company would have grown a $9,000 investment three years ago into a whopping $35,234 today.

Man holding Australian dollar notes, symbolising dividends. — Image source: Getty Images

ASX All Ords stock delivers the goods

Three years ago, in mid-May 2021, you could have bought the ASX All Ords stock for $2.01 a share.

Meaning your $9,000 investment would have netted you 4,477 Yancoal shares and a bit of pocket change.

By the end of 2021, your ASX investment would already be up some 30%, while you probably spent that pocket change.

And things really began to heat up in 2022.

That year, thermal coal prices more than doubled to reach all-time highs following Russia's invasion of Ukraine. The Yancoal share price also notch its own record highs.

Although the coal price has tumbled more than 65% since those record highs, the Yancoal share price has held up much better, as the ASX All Ords share continues to be a cash-generating machine.

In afternoon trade today, Yancoal shares are swapping hands for $5.95 apiece.

So, the 4,477 shares you bought three years ago would be worth a rounded $26,460 today. Which, you might be thinking, is well below the headline-grabbing $35,234 mentioned above.

What gives?

The dividends, of course!

Don't forget the passive income

Over the past three years the ASX All Ords stock has not only seen its share price rocket, it's also delivered shareholders some seriously outsized passive income.

If you'd bought shares in May 2021, you have been eligible to receive the past three dividend payouts, all but one of which were fully franked.

Those four payouts work out to $1.92 per share.

So, if we add that into the current Yancoal share price of $5.95, the accumulated value of this ASX All Ords stock over the past three years works out to $7.87 per share.

Meaning your 4,477 shares would have netted you $35,234 by today, with some potential tax benefits from those franking credits.

Boom!

Now, as always, before investing in Yancoal shares or any other ASX stock, do your own research or seek expert advice.

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