If you invested $1000 in CSL (ASX:CSL) shares a decade ago, this is how much they would be worth now

Long-term investing has paid off in the case of CSL shareholders

| More on:
man laying on his couch with bundles of money and extremely ecstatic about high dividend returns

Image source: Getty Images

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

The CSL Limited (ASX: CSL) share price has been a major ASX winner over the past decade. Plus, it's got the results to prove it.

Whereas the S&P/ASX 200 Index (ASX: XJO) has gained 83% over the past 10 years, CSL shareholders have enjoyed far healthier gains.

We've done the math to show you the possible benefits of long-term investing, using CSL as a case example.

Invest with a long-term horizon in mind

Biotechnology player CSL has been in the vaccines market for more than 25 years. Since listing in 1994, its shares have exhibited tremendous long-term capital appreciation.

Imagine we are a prudent investor with a long-term forward way of thinking. Next, imagine we invested $1,000 in CSL shares at the closing price of $28.39 per share back on 5 August 2011. That's roughly 35 shares.

The first way we need to examine our return is to calculate the capital gains on our shares. In doing so we realise a return on investment of 943%, which is quite handy given the broad index's return.

CSL share price over last 10 years — now

Source: The Motley Fool

That implies our original position is now worth approximately $9,430. However, that ignores one half of the equation. We also need to factor in the effect of CSL's dividend, in order to assess our total return.

The effect of CSL's dividend

Over the course of our examination period, CSL has returned $17.90 per share to shareholders by way of its dividend.

CSL has grown its dividend payment at a compound annual growth rate (CAGR) of 5.3% since 2011.

However, taking out the significant down-step in 2021, it has grown its dividend at a CAGR of approximately 14% over the same period.

CSL dividend history

Source: The Motley Fool

Adding in CSL's dividend schedule, our total return mushrooms to more than 1005% over the previous 10-year period. This implies our position is now worth $10,056.

Some very interesting outcomes arrive when we make a few tweaks to our calculations. Let's assume we reinvested the dividends received to buy more CSL shares along the way.

Harnessing the value of this dividend reinvestment plan (DRIP) yields a total return of 1,124% on our original investment.

Therefore, it suggests long-term investing can have tremendous payoffs, if done correctly.

Foolish takeaway

Several things to always remember when investing.

First, long-term investing can work. While past returns are no guarantee of future performance, the ASX 200 has risen 83% over the past 10 years. 

Second, always complete due diligence and the necessary research before allocating hard-earned capital. Finally, risk management is paramount. Maintaining an investment with conviction over a long-term horizon can be a winning formula, as evidenced through the case of CSL shares.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. 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 Bruce Jackson.

More on Share Market News

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a nervous, but positive, Tuesday for ASX investors.

Read more »

A susccesful person kicks back and relaxes on a comfy chair
Best Shares

If I could only buy and hold a single ASX share forever, it would be this one

There are two reasons why this stock is my first choice...

Read more »

young woman reviewing financial reports at desk with multiple computer screens
Opinions

Brokers' verdict on 4 popular ASX 200 financial stocks

Financials outperformed every other sector in FY25. What should you do now with these 4 stocks?

Read more »

two colleagues high five each other as they sit side by side at a long desk in front of their laptop computers in an office environment.
Share Gainers

Why Bapcor, Ramelius, Sandfire, and WIA Gold shares are rising today

These shares are having a better day than most on Tuesday. But why?

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

Is it too late to invest in the record setting S&P 500 stock gains?

A top broker reveals what to expect next from the surging S&P 500 Index.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Boss Energy, DroneShield, Greatland, and Viva Energy shares are tumbling today

Let's see why these shares are out of favour with investors on Tuesday.

Read more »

Man smiling at a laptop because of a rising share price.
Broker Notes

4 ASX shares to buy this week: experts

Looking for investment inspiration?

Read more »

Miner and company person analysing results of a mining company.
Energy Shares

Should you buy Boss Energy shares now after Monday's huge sell-off?

Macquarie gives its verdict on Boss Energy shares following Monday’s crash.

Read more »