Bought $5,000 worth of New Hope and BHP shares 5 years ago? Guess how much passive income you've already earned!

A $5,000 investment in New Hope and BHP shares five years ago would have returned a surprising amount of passive income by now.

New Hope Corp Ltd (ASX: NHC) and BHP Group Ltd (ASX: BHP) shares have not only smashed the benchmark returns over the past five years, they've also delivered some market-beating passive income.

Since 24 September 2021, the S&P/ASX 200 Index (ASX: XJO) has gained 19.4%.

Reflecting the importance of passive income, the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date, has gained 44.1% over this same period.

So, just how much would you have earned from a $5,000 investment in New Hope and BHP shares five years ago?

Let's dig in.

Numerous Australian dollar notes laid out.

Image source: Getty Images

Drilling into BHP shares for passive income

On 24 September 2021, you could have bought shares in the ASX 200 mining giant for $33.59 apiece. So, your $5,000 investment would have netted you 148 shares, with enough change left over for a cheeseburger.

Now you would have done quite well on the capital gains front alone. During the Wednesday lunch hour, BHP shares are changing hands for $62.11, up 84.9% in five years. And if you sold those 148 shares today, you'd receive $9,192.

As for that passive income, if you'd owned Australia's largest mining stock – and now the biggest stock on the ASX – for the last five years, you would have received (or shortly will) the last 10 fully-franked dividends. BHP stock traded ex-dividend on 3 September. If you held the miner at market close on 2 September, you can expect to get paid today.

Turning to my trusty calculator, those 10 fully-franked dividend payouts work out to $13.583 a share.

So, the 148 BHP shares you bought for $5,000 five years ago would already have delivered $2,010 in passive income. And that's atop those share price gains, not to mention the cheeseburger!

Which brings us to…

Tipping $5,000 into New Hope shares

Five years ago, New Hope shares were trading for $2.38 each. Meaning for $5,000, you could have bought 2,100 shares in the ASX 200 coal stock.

And you wouldn't have regretted it.

At the time of writing, New Hope shares are trading for $5.89, up 147.5% since 24 September 2021. And those 2,100 shares you bought are now worth $12,369.

Over this time, you'd also have received (or shortly will) the last 10 fully-franked New Hope dividends. New Hope stock traded ex-dividend on Monday. If you owned shares in the Aussie coal miner at market close on Friday, you can expect to receive that passive income payout on 15 October.

All told, those last 10 New Hope dividend payments equate to $2.69 a share.

Meaning the 2,100 New Hope shares you picked up for $5,000 five years ago will already have paid out $5,649 in passive income, with tax benefits from those franking credits.

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 recommended BHP 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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