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.

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

Calculator and gold bars on Australian dollars, symbolising dividends.
Dividend Investing

 2 ASX dividend shares worth their weight in gold

Analysts rate these income options very highly. Let's find out why.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Share Market News

5 ASX dividend shares to buy and hold for the next 20 years

Analysts think these shares could be great long term picks for income investors.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Dividend Investing

This dirt cheap ASX stock offers a stunning 11% dividend yield

Big money could be made from this dividend stock according to Goldman Sachs.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

Brokers say these excellent ASX dividend stocks are top buys

Let's see what sort of yields are on offer with these shares.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Own CSL shares? You're getting a dividend paycheque today

There's a silver lining to today's sell-off.

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.
Dividend Investing

3 strong ASX dividend stocks for income investors to buy

Brokers have put buy ratings on these stocks. Let's see why they are bullish.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

Buy these ASX dividend shares for 4% to 7% yields

Experts are tipping these shares as buys for income investors. Let's see why.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

2 ASX dividend giants trading at bargain prices after market dip

Is now the time to look at these 2 dividend players?

Read more »