If I could get my time machine to work, would I be better off buying $10,000 worth of Westpac Banking Corp (ASX: WBC) or National Australia Bank Ltd (ASX: NAB) shares on 8 September 2023?
Now both S&P/ASX 200 Index (ASX: XJO) bank stocks have outperformed the 24.4% gains posted by the ASX 200 over the last three years.
And, once we add back in there twice annual dividend payouts, they've also both beaten the 37.9% gains delivered by the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date.
But which of these big four Aussie banks has led the charge?
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Investing $10,000 into NAB shares
Three years ago, I could have picked up NAB shares for $28.65.
Meaning my $10,000 would have gotten me 349 shares in the big four Aussie bank.
As we head into the Wednesday lunch hour today, those same shares are changing hands for $38.21, up 33.4% in three years.
So, what about those dividends?
Well, if I owned the ASX 200 bank stock for the last three years I would have received six fully-franked dividend payments, totalling $5.08 a share.
If we add that back into today's share price, then the accumulated value of the NAB shares I bought for $28.65 three years ago is now worth $43.29. And the 349 shares I bought for $10,000 are worth an accumulated $15,108.
Not bad.
But what about Westpac?
Buying Westpac shares in September 2023
On 8 September 2023, Westpac shares closed the day trading for $21.17. So, for $10,000, I could have bought 472 Westpac shares.
At time of writing, shares in the ASX 200 bank stock are swapping hands for $34.23 each, up 61.7% in three years.
Now let's add that passive income back in.
If I owned Westpac shares for the last three years, I would have received the last six fully-franked dividend payments, totalling $4.68 a share.
Adding that back into the current share price, the accumulated value of the Westpac shares I bought three years ago is now worth $38.91. And the 472 shares I bought for $10,000 are worth an accumulated $18,366.
So, while both ASX 200 bank stocks have handily outperformed the benchmark indexes over the last three years, Westpac shares have gained significantly more than NAB shares.
Now, if I can only get that time machine working!
