Did you invest $7k in Westpac shares in 2020? If so, here's how much dividend income you've earned

Have Westpac shares really returned 36% in three 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 Westpac share price has risen 20% over the last three years to close Thursday's session at $20.60
  • Meanwhile, the big four bank has been a consistent dividend payer
  • Indeed, each Westpac share has provided $2.74 of dividend income in that time

If you bought into Westpac Banking Corp (ASX: WBC) shares three years ago, you're likely pretty happy with your investment.

Three years ago, the big four bank's stock was just lifting off its COVID-19 lows.

At that point, a $7,000 investment probably would have seen one walking away with 405 shares, paying $17.22 apiece for $6,974.10.

Today, that parcel would sell for $8,343. The Westpac share price last traded at $20.60, 20% higher than it was three years ago.

Created with Highcharts 11.4.3Westpac Banking Corporation PriceZoom1M3M6MYTD1Y5Y10YALL29 May 20202 Jun 2023Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23202120212022202220232023www.fool.com.au

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 24% in that time.

But beyond share price gains, Westpac investors have also realised some decent dividends in the years since 2020. Let's take a look.

All dividends paid to those holding Westpac shares since 2020

Here are all the dividends handed to those invested in Westpac shares since June 2020:

Westpac dividends' pay dateTypeDividend amount
December 2022Final64 cents
June 2022Interim61 cents
December 2021Final60 cents
June 2021Interim58 cents
December 2020Final31 cents
Total: $2.74

As the chart above shows, each Westpac share has yielded $2.74 of dividend income over the last three years.

That means our figurative parcel has likely provided $1,109.70 of passive income in that time, leaving our imagined investor realising a total return on investment (ROI) of around 36%.

Those returns might have been bolstered even more if one were to have reinvested their dividend income, perhaps using the bank's dividend reinvestment plan (DRP).

Not to mention, all dividends provided to Westpac shareholders since 2000 have been fully franked. Thus, they might have brought extra benefits to some shareholders come tax time.

Considering Westpac's 64-cent final dividend and its 61-cent interim dividend, shares in the bank currently boast a 6.5% dividend yield.   

And investors don't have long to wait until its next offering. Westpac declared a 70-cent interim dividend last month. That will begin to hit shareholders' accounts later this month.

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.

More on Bank Shares

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Dividend Investing

Are CBA shares still a good buy today for passive income?

Looking to earn passive income from ASX dividend stocks? Here’s my take on CBA shares.

Read more »

Shocked office worker staring at computer screen with colleagues working in the background.
Bank Shares

The ASX bank share beating CBA in 2025

Many investors might not realise this smaller bank stock is leading the pack this year. 

Read more »

man thinking about whether to invest in bitcoin
Bank Shares

Here's what needs to happen for the CBA share price to try and reach $200

What could drive the CBA share price higher?

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Bank Shares

Why now could be an opportune time to sell CBA shares

A leading expert offers his verdict on the outlook for CBA shares.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Bank Shares

The Westpac share price is a buy – UBS

The broker is optimistic on Westpac shares.

Read more »

Bank building with the word bank on it.
Bank Shares

The biggest buyers and sellers of ASX 200 bank stocks revealed

Macquarie breaks down who’s been buying and who’s been selling the ASX 200 bank stocks.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Resources Shares

Should I switch my ASX 200 banking stocks for ASX 200 miners before earnings season?

The ASX 200 Index is dominated by Australia's bank and materials/mining sectors, which together account for around half of the…

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Bank Shares

Here's when Westpac says the RBA will now cut interest rates

The RBA surprised everyone by keeping rates on hold last week. So, when will the next cut happen?

Read more »