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.
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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.
