Invested $5,000 in Wesfarmers shares 5 years ago? Here's how much passive income you've earned

Has Wesfarmers stock proven a good dividend buy in recent years?

| More on:
Happy woman holding $50 Australian notes

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

Key points

  • The Wesfarmers share price has soared 61% since March 2018 to trade at $48.44 today
  • Meanwhile, the retail giant has paid consistent dividends
  • Indeed, a $5,000 investment in the stock five years ago has likely yielded more than $1,700 of passive income over the years since

The last five years have been a wild ride for those invested in Wesfarmers Ltd (ASX: WES) shares.

The stock rocketed from around $30 in March 2018 (accounting for the spin-out of Coles Group Ltd (ASX: COL)) to a high of over $66 in August 2021. Today, it's trading at $48.44 – marking a 61.5% return.

Created with Highcharts 11.4.3Wesfarmers PriceZoom1M3M6MYTD1Y5Y10YALL20 Mar 201820 Mar 2023Zoom ▾Jul '18Jan '19Jul '19Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '232019201920202020202120212022202220232023www.fool.com.au

But what happens when we factor in the company's dividends? Let's take a look.

All dividends paid to those holding Wesfarmers shares since 2018

Here are all the offerings handed to the S&P/ASX 200 Index (ASX: XJO) retail conglomerate's shareholders over the last five years:

Wesfarmers dividends' pay dateTypeDividend amount
October 2022Final$1
March 2022Interim80 cents
October 2021Final90 cents
March 2021Interim88 cents
October 2020Final77 cents
October 2020Special18 cents
March 2020Interim75 cents
October 2019Final78 cents
April 2019Interim$1
 April 2019Special$1
September 2018Final$1.20
April 2018Interim$1.03
Total: $10.29

As readers can see, each Wesfarmers share has yielded around $10.29 of dividends since March 2018.

That means our figurative parcel has likely provided $1,708.14 of passive income in that time.

Of course, it's also worth remembering the spin-out of Coles Group Ltd (ASX: COL) in late 2018. Wesfarmers shareholders received 1 Coles share for each stock in the parent company they held. The Coles share price is currently $17.59.

Not to mention, all the dividends offered by the ASX 200 icon in that time have been fully franked. That means they could have brought additional benefits at tax time.

Wesfarmers shares currently boast a 3.72% dividend yield.

Excitingly, the company's next dividend will be paid in a little over a week. Its 88 cents per share interim dividend will hit shareholders' accounts from 28 March.

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 positions in and has recommended Coles Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A man with a wry smile on his face is shown close up behind ascending piles of coins as he places another coin on top of the tallest stack representing rising dividends
Dividend Investing

Here are the 3 biggest dividend payers in my ASX stock portfolio today

These three stocks pour cash in to my portfolio...

Read more »

A senior investor wearing glasses sits at his desk and works on his ASX shares portfolio on his laptop.
Dividend Investing

Overinvested in Fortescue shares? I'd buy these ASX dividend shares

Fortescue may not be the best choice for dividend income.

Read more »

Close up of woman using calculator and laptop for calculating dividends.
Dividend Investing

Forget term deposits! I'd buy these two ASX 200 shares instead

I’d rather buy these stocks for income than hold a term deposit right now.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Dividend Investing

Forget CBA shares and buy these ASX dividend shares

Analysts are bearish on CBA but bullish on these shares.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Own IVV ETF or other iShares ASX ETFs? Next dividends and DRP prices revealed…

BlackRock has announced the next lot of dividends for its iShares ETFs, as well as the DRP prices.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Dividend Investing

How are these passive income investors earning a 7.5% dividend yield on their surging CBA shares?

CBA shares are proving more lucrative for some passive income investors than others.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
Dividend Investing

3 excellent ASX dividend shares to buy with $2,500

Brokers think these shares could be in the buy zone for income investors.

Read more »

A woman sits in a quiet home nook with her laptop computer and a notepad and pen on the table next to her as she smiles at information on the screen.
Opinions

2 top ASX passive income stocks to buy with $5,000 today

I think these leading ASX passive income shares will keep delivering market beating yields in FY 2026.

Read more »