Invested $4,000 in South32 shares 5 years ago? Here's how much passive income you've earned

Have South32's dividends made up for its share price's underwhelming performance?

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Key points

  • The South32 share price has lifted just 1% over the last five years to close Thursday's session at $4.06
  • Fortunately, the stock has also provided notable passive income over that time
  • Each South32 stock has yielded 80.7 cents of dividends since May 2018

The South32 Ltd (ASX: S32) share price has traded relatively flat over the last five years.

Indeed, an investor who bought $4,000 worth of the diversified mining company's stock in May 2018 likely walked away with 997 shares, paying $4.01 apiece.

Today, that parcel would be worth $4,047.82. The South32 share price last traded at $4.06.

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

So, has the passive income on offer through the mining giant's dividends made up for its share price's underwhelming performance? Let's take a look.

All dividends paid to those holding South32 shares since 2018

Here are all the dividends offered to those invested in South32 stock since this time five years ago:

South32 dividends' pay dateTypeDividend amount
April 2023Interim7.3 cents
October 2022Final and special20.7 cents and 4.4 cents
April 2022Interim11.9 cents
October 2021Final and special4.8 cents and 2.7 cents
April 2021Interim1.8 cents
October 2020Final1.4 cents
April 2020Interim3.3 cents
October 2019Final4.1 cents
April 2019Interim9.6 cents
October 2018Final8.7 cents
Total: 80.7 cents

As the chart above shows, each South32 share has yielded 80.7 cents in dividends since this time five years ago.

That means our figurative investment has provided $807.58 of dividend income over its life.

Considering both share price gains and dividends, the ASX 200 stock has provided a return on investment (ROI) of around 23%.

And that might have been bolstered if one were to have reinvested the passive income they received through their South32 shares, thereby compounding any gains.

Not to mention, all the dividends paid by South32 in that time have been fully franked. Thus, they might have brought additional benefits for some investors at tax time.

At the time of writing, South32 shares are trading with an impressive 6.9% 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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