Here's how much I'd have if I'd bought 500 CBA shares 10 years ago

You won't hear many long-term shareholders complaining about their CBA stock.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Commonwealth Bank of Australia (ASX: CBA) shares closed up 1.11% yesterday, trading for $125.48 apiece.

That sees shares in the S&P/ASX 200 Index (ASX: XJO) bank stock up an impressive 30% since this time last year, not including the two fully franked dividends eligible shareholders will have received.

And it sees Australia's biggest bank commanding a market cap of $210 billion.

Now investors who've listened to the chorus of bearish analyst views on the valuation of CBA shares may have been spooked into selling their holdings and missed out on some of those outsized gains.

Investors who've kept their long-term goals in mind and held onto shares, on the other hand, should be sitting pretty.

How pretty?

Let's dig in.

A woman in a bright yellow jumper looks happily at her yellow piggy bank.

Image source: Getty Images

500 CBA shares at 2014 prices please

One year ago, on 13 June 2014, I could have snapped up CBA shares for $81.39 apiece.

Meaning my 500 shares would have set me back an even $40,695.

A tidy sum, to be sure. But an investment that would have paid off in spades.

At yesterday's closing price of $125.48 a share, my 500 shares would now be worth an even $62,740.

That equates to a 54.17% gain on my initial investment.

Not bad.

But let's not forget the dividends.

Why passive income investors like CommBank stock

CBA shares have long been a favourite among passive income investors.

That's because the big four bank has a lengthy track record of paying two annual, fully franked dividends a year. A record that reaches back more than a decade. And one that includes the pandemic addled year of 2020.

If I'd bought CommBank stock on 13 June 2014, I would have been eligible to receive the $2.18 final dividend. That welcome passive income would have hit my bank account on 2 October 2014.

I would then also have received 19 more dividend payouts to date.

Turning to my trusty calculator, that works out to a total 10-year payout of $40.47 per CBA share. With some potential tax benefits from those franking credits.

Now, I'd likely have done better by reinvesting those dividends as they came in.

But we'll assume I spent that passive income on some extra little luxuries instead.

So, we'll just add that $40.47 in dividends into yesterday's closing share price of $125.48, which brings the accumulated value of my CBA shares bought 10 years ago to $165.95.

Meaning my 500 shares, purchased for $40,695, would now be worth an accumulated $82,975.

That represents a gain of 103.90%.

Happy investing!

Motley Fool contributor Bernd Struben 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.

More on Bank Shares

A man rests his chin in his hands, pondering what is the answer?
Earnings Results

CBA shares: What to expect from Wednesday's FY26 earnings

Australia’s biggest bank opens its books this week.

Read more »

Young woman using computer laptop smiling in love showing heart symbol and shape with hands. as she switches from a big telco to Aussie Broadband which is capturing more market share
Bank Shares

3 reasons I'd invest $10,000 in NAB shares today

The income and valuation look attractive, while one division has caught my eye.

Read more »

A woman dressed in red and standing in front of a red background peers thoughtfully at a piggy bank in her hand.
Bank Shares

Why is everyone buying Macquarie Group shares this week?

Find what is driving the investment bank's share price higher this week.

Read more »

Wife and husband with a laptop on a sofa over the moon at good news.
Bank Shares

Why Citi thinks ANZ shares are the pick of the big four

One big four bank still has the brokers onside.

Read more »

Young ASX share investor excitedly throwing hands up in front of savings jar.
Bank Shares

How many NAB shares do I need to buy to generate $10,000 in passive income in FY27?

The bank is expected to pay shareholders a $1.72 per share dividend in FY27.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Bank Shares

How many Westpac shares do I need to buy for $2,000 per month in passive income?

Westpac is the third-largest ASX 200 stock on the index in terms of market capitalisation.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Bank Shares

Should I invest $5,000 in CBA shares in August?

Find out what brokers tip for the banking giant's share price now.

Read more »

Bank building in a financial district.
Bank Shares

If I invest $10,000 in ANZ shares, how much passive income will I receive in 2027?

How much income can investors bank on from ANZ?

Read more »