If you invested $10,000 in Wesfarmers shares a decade ago, here's what it would be worth now

Would buying Wesfarmers stock on 2 May 2014 have been a good decision?

| More on:
Person holding Australian dollar notes, symbolising dividends.

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

Wesfarmers Ltd (ASX: WES) shares closed at $66.48 apiece yesterday afternoon, up 0.71% for the day.

Wesfarmers has outperformed the S&P/ASX 200 Index (ASX: XJO) by a long shot over the past decade.

The Wesfarmers share price has risen 113.2% while ASX 200 stocks have ascended 39%.

So, the returns have been outstanding, even without dividends, but we'll get to them later.

So, let's look at how much you'd have now if you'd invested $10,000 in the conglomerate back then.

Wesfarmers shares for just over $30?!?!

On 2 May 2014, Wesfarmers shares were worth $31.11 apiece at the opening bell.

So $10,000 would have bought you 321 Wesfarmers shares. Total spend: $9,986.31.

Fast forward 10 years and your Wesfarmers stocks are now worth $21,340 based on capital growth alone.

Then we gotta add dividends.

Over the past decade, Wesfarmers has paid $18.40 per share in dividends (with full franking).

Assuming you took those dividends in cash, all up you would have received $5,906.40.

If we add the dividends to your capital gains, your Wesfarmers portfolio is now worth $27,246.40.

What's the latest news from Wesfarmers?

Wesfarmers announced the retirement of Ian Hansen, Managing Director of Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) today, effective from November.

Hansen will remain with WesCEF and Wesfarmers as an advisor and will remain chair of the group's lithium business, Covalent Lithium.

Aaron Hood, WesCEF's chief operating officer, will succeed Hansen.

Wesfarmers also held a Strategy Briefing Day and released a presentation for investors yesterday.

Should you buy Wesfarmers shares?

One of the benefits of investing in Wesfarmers shares is the diversification of businesses this entails.

Buying Wesfarmers stock means buying a slice of household names such as Bunnings, Kmart, Target, Beaumont Tiles, and catch.com.au.

You also get a piece of geeks2u, Silk Laser Centre, TKD Took Kit Depot, and InstantScripts, plus exposure to the growing Wesfarmers health division and lithium division.

Currently, the consensus rating on Wesfarmers shares among 17 analysts on CommSec is hold.

Goldman Sachs has a 12-month price target of $66.51 on Wesfarmers shares. This is about where the company is trading now. However, the broker still has a buy rating on the stock.

The broker says:

Relative to our Consumer coverage universe, WES is the most expensive large cap staples company, though this is supported by highest growth and returns and the least regulatory risk vs supermarkets and gaming/hotels.

As for future dividends, here is the Wesfarmers passive income forecast through to 2028.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Young girl drinking milk showing off muscles.
Dividend Investing

Up 41% in 2025, how this ASX 200 dividend stock is primed for 'continuing growth'

A leading expert expects ongoing growth from this high-flying ASX 200 dividend stock.

Read more »

Happy couple doing online shopping.
Consumer Staples & Discretionary Shares

What are Macquarie's top 3 ASX stock picks in the consumer sector?

These are the brokers top picks from this side of the market.

Read more »

Anxious people gambling
Earnings Results

Star Entertainment share price leaps…then crashes on first day of trade since February

Star Entertainment shares are trading on the ASX once more today. And they’re plenty volatile!

Read more »

Family shopping for groceries
Dividend Investing

Should I buy Woolworths shares for the 4% dividend yield?

Woolworths shares even delivered two fully franked dividends during the pandemic-addled year of 2020.

Read more »

A person in the dark background of a casino gambling room places his hands either side of a large pile of casino chips.
Consumer Staples & Discretionary Shares

How will the latest news from Star Entertainment affect your ASX shares?

The casino operator's biggest shareholder will subscribe for a third of Bally's $300 million takeover offer.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Consumer Staples & Discretionary Shares

Why Macquarie forecasts a 92% upside for this beaten down ASX 200 stock

Macquarie expects a BIG turnaround for this ASX 200 stock in the months ahead.

Read more »

A photo of a young couple who are purchasing fruits and vegetables at a market shop.
Consumer Staples & Discretionary Shares

Should I buy Coles shares today amid the Trump tariff market tantrum?

Coles shares have smashed the benchmark returns over the past year. Can this continue?

Read more »

A gambler at a casino bets a pile of chips on one number
Consumer Staples & Discretionary Shares

Own Star Entertainment shares? Here are the takeover details and when you'll get to vote

Star Entertainment has released details of the takeover deal with US casino giant Bally's.

Read more »