Invested $5k in Coles shares in 2020? Here's how much dividend income you've earned

Coles stock has underperformed over the last three years. Have the dividends been worth it?

| More on:
shopping trolley filled with coins representing asx retail share price.ce

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 Coles share price has lifted just 12% over the last three years to trade at $17.72 as of its previous close
  • Meanwhile, the ASX 200 has gained 19%
  • The supermarket stock has provided investors with $1.875 of dividends per share over that time

The Coles Group Ltd (ASX: COL) share price has underperformed the market over the last three years.

At this point of 2020, a $5,000 investment likely would have seen one boasting 317 shares in the supermarket operator, having paid $15.76 apiece.

That parcel would have been worth $5,617.24 as of the stock's most recent close. The Coles share price finished Tuesday's session at $17.72 – 12% higher than it was in June 2020.

Created with Highcharts 11.4.3Coles Group PriceZoom1M3M6MYTD1Y5Y10YALL5 Jun 20207 Jun 2023Zoom ▾Sep '20Jan '21May '21Sep '21Jan '22May '22Sep '22Jan '23May '23202120212022202220232023www.fool.com.au

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

But share price gains aren't the only thing our figurative investment has provided over its life. The company has also been handing shareholders biannual dividends.

All dividends paid to those holding Coles shares since 2020

Here are all the dividends Coles shares have provided over the last three years:

Coles dividends' pay dateTypeDividend amount
March 2023Interim36 cents
September 2022Final30 cents
March 2022Interim33 cents
September 2021Final28 cents
March 2021Interim33 cents
September 2020Final27.5 cents
Total: $1.875

As the above chart shows, each Coles share has provided $1.875 of dividend income. That leaves our $5,000 parcel having yielded $594.375 over its life.

Considering both the passive income and the capital gains provided by the supermarket stock, an investor has likely realised a 24% return on investment (ROI).

And that might have been bolstered if one had used their dividends to buy more shares, thereby compounding their returns. Perhaps, by participating in the company's dividend reinvestment plan (DRP).

Not to mention, all the dividends ever paid to those invested in Coles shares have been fully franked. Thus, they might have brought extra benefits to some shareholders come tax time.

At the time of writing, stock in the supermarket favourite is trading with a 3.7% 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 positions in and has recommended Coles Group. 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

a mature aged couple dance together in their kitchen while they are preparing food in a joyful scene as the Breville share price rises on the back of a 25% profit surge
Dividend Investing

The best ASX income shares for retirees in 2025

Let's see what makes these shares top picks for retirees.

Read more »

A retiree relaxing in the pool and giving a thumbs up.
Dividend Investing

3 under-the-radar ASX All Ords shares that could fund your early retirement

I think all three of these relatively unknown stocks are strong choices for retirement.

Read more »

Falling yellow arrow with descending wooden bars with the percentage sign written on them.
Dividend Investing

Buy these ASX dividend shares to beat falling interest rates

Let's see which dividend shares analysts are tipping as buys this month.

Read more »

A senior couple discusses a share trade they are making on a laptop computer
Dividend Investing

1 ASX dividend stock down 54% I'd buy right now

This business could build good returns for investors.

Read more »

A woman wearing glasses and a black top smiles broadly as she stares at a money yarn full of coins representing the rising JB Hi-Fi share price and rising dividends over the past five years
How to invest

How much do I need to invest in ASX shares for $20,000 a year in passive income?

We look at three top ASX dividend shares to earn a $20,000 annual passive income stream.

Read more »

A happy elderly woman smiles and cheers as she looks at good investment news on her laptop.
Retirement

3 ASX dividend shares paying more than the pension in retirement

How much money would you need to have invested to receive more in ASX dividends than the pension?

Read more »

A happy older couple relax in a hammock together as they think about enjoying life with a passive income stream.
Dividend Investing

Here's why I own these 3 ASX dividend shares for passive income

These companies pay me handsomely to own them.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Dividend Investing

With a yield of 6.9%, how much upside does Macquarie tip for APA Group shares?

Let's see what the broker is saying about this high-yield dividend stock.

Read more »