Invested $9,000 in Suncorp shares in 2018? Here's how much dividend income you've realised

Have Suncorp's dividends made up for its share price's poor performance?

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Key points

  • The Suncorp share price has slumped 12% over the last five years to trade at $12.53 as of yesterday's close
  • Fortunately, the dividends on offer from the company in that time have made up for its stock's losses
  • Each Suncorp share had yielded $3.09 of dividend income since May 2018

The last five years have been rough for the Suncorp Group Ltd (ASX: SUN) share price. Stock in the financial services conglomerate has tumbled to trade at $12.53 as of Tuesday's close.

However, looking back to May 2018, an investor sinking $9,000 into the stock likely would have snapped up 629 shares, paying $14.30 apiece.

Today, that parcel would be worth around 12% less – just $7,881.37.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted 19% in that time.

Fortunately, Suncorp shares have proven to provide consistent dividends over the years. Here's how much dividend income an investor who bought into the stock five years ago has likely realised.

All dividends paid to holders of Suncorp shares since 2018:

Here are all the dividends paid to those invested in Suncorp shares since May 2018:

Suncorp dividends' pay dateTypeDividend amount
March 2023Interim33 cents
September 2022Final17 cents
April 2022Interim23 cents
September 2021Final and special40 cents and 8 cents
April 2021Interim26 cents
October 2020Final10 cents
March 2020Interim26 cents
September 2019Final44 cents
May 2019Special8 cents
April 2019Interim26 cents
September 2018Final and special40 cents and 8 cents
Total: $3.09

As readers can see, each Suncorp share has yielded $3.09 of dividend income over the last five years. That negates any share price losses experienced in that time.

It also means our figurative investment has provided a total of $1,943.61 in dividends over its life.

That brings its return on investment (ROI), considering both share price gains and dividend income, to 9.2%.

And that's before considering the potential benefits the payments could have brought for some investors at tax time. All the dividends paid to those holding Suncorp shares over the last five years have been fully franked.

Right now, Suncorp shares offer a 3.99% dividend yield.

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 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 Scott Phillips.

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