Did you invest $3k in Telstra shares 3 years ago? If so, here's how much passive income your investment has provided

Has the telco giant's stock proven to be a good investment in recent years?

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Key points

  • The Telstra share price has gained 35% over the last three years to close last week at $4.34
  • Meanwhile, the telecommunications icon has paid consistent dividends
  • Indeed, each Telstra share has yielded 49 cents of passive income since June 2020

The Telstra Group Ltd (ASX: TLS) share price has outperformed the market over the last three years. It's lifted 35% since June 2023.

Back then, shares in the telecommunications giant were swapping hands for $3.22. At which point, a $3,000 investment would have bought 931 Telstra shares.

Today, that parcel would be worth $4,040.54. The Telstra share price last traded at $4.34.

Created with Highcharts 11.4.3Telstra Group PriceZoom1M3M6MYTD1Y5Y10YALL5 Jun 20205 Jun 2023Zoom ▾Sep '20Jan '21May '21Sep '21Jan '22May '22Sep '22Jan '23May '23202120212022202220232023www.fool.com.au

In the meantime, the S&P/ASX 200 Index (ASX: XJO) has risen 19%.

But more than share price gains, Telstra has also provided biannual dividends – and plenty of special dividends – in that time.

Let's take a look at the passive income the ASX 200 favourite has offered since June 2020.

All dividends paid to those holding Telstra shares since 2020

Here are all the dividends paid to those holding Telstra shares since June 2020:

Telstra dividends' pay dateTypeDividend amount
March 2023Interim8.5 cents
September 2022Final and special7.5 cents and 1 cent
April 2022Interim and special6 cents and 2 cents
September 2021Final and special5 cents and 3 cents
March 2021Interim and special5 cents and 3 cents
September 2020Final and special5 cents and 3 cents
Total: 49 cents

As the above chart shows, each Telstra share has provided 49 cents of passive income over the last three years.

That means our figurative $3,000 investment has yielded a total of $456.19 in dividends.

Considering both the telco's share price gains and its dividends, those who bought the stock in June 2020 can likely brag a return on investment (ROI) of 50%.

Not to mention, the compounding they might have realised had they used their dividends to buy more shares in the company, perhaps making the most of its dividend reinvestment plan (DRP).  

And that's before we consider that all the dividends paid by the company in that time have been fully franked. Thus, they might have brought additional benefits for some investors at tax time.

Right now, Telstra shares are trading with a 3.68% dividend yield, not considering its most recent special dividend.

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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 Telstra Group. 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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