Did you buy $5,000 of Westpac shares 5 years ago? If so, here's how much dividend income you've earned

Have Westpac's dividends helped a five-year investor break even?

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Key points

  • The Westpac share price has suffered over the last half-decade, falling 24.5% in that time
  • Fortunately, the big four bank has continued to pay out dividends
  • Indeed, each Westpac stock has yielded $6.36 in passive income since February 2018 

Have you owned Westpac Banking Corp (ASX: WBC) shares over the last five years? If so, you probably know the stock has suffered in that time.

Indeed, what was a $5,000 investment in February 2018 would be worth just $3,750.63 today.

In that time, the Westpac share price has slumped from $30.49 to $23.01 – a 24.5% tumble.

Created with Highcharts 11.4.3Westpac Banking Corporation PriceZoom1M3M6MYTD1Y5Y10YALL20 Feb 201821 Feb 2023Zoom ▾Jul '18Jan '19Jul '19Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '232019201920202020202120212022202220232023www.fool.com.au

For comparison, the S&P/ASX 200 Index (ASX: XJO) has traded relatively flat over that time.

Fortunately, the big four bank has continued to pay out dividends. Let's take a look at the total return on the table for those invested in Westpac shares over the last five years.

All dividends paid to those holding Westpac shares since 2018

Here're all the dividends paid by the ASX 200 giant over the last five years:

Westpac dividends' pay dateTypeDividend amount
December 2022Final64 cents
June 2022Interim61 cents
December 2021Final60 cents
June 2021Interim58 cents
December 2020Final31 cents
December 2019Final80 cents
June 2019Interim94 cents
December 2018Final94 cents
July 2018Interim94 cents
Total: $6.36

That's right, every Westpac share has yielded a total of $6.36 in dividends over the last five years.

That means what was a $5,000 parcel back in February 2018 then has probably provided $1,036.68 of passive income over its life.

Though, that's not enough to see an investor break even. Factoring in both the bank's falling share price and its dividends, our figurative investor is likely 3.6% in the red.

Fortunately, however, all of the big four bank's dividends in that time have been fully franked. That means they may have provided tax benefits to some investors.

Not to mention, its current dividend yield likely looks attractive to passive income investors with a 5.4% yield right now.

Motley Fool contributor Brooke Cooper 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 Westpac Banking. 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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