Invested $10,000 in ANZ shares 5 years ago? Here's how much passive income you've earned!

ANZ is popular among passive income investors for its history of reliable dividend payments.

| More on:
A woman in a hammock on her laptop and drinking a smoothie

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

If you're investing for passive income and bought ANZ Group Holdings Ltd (ASX: ANZ) shares five years ago, you'll have earned some outsized returns by now.

And not just from the S&P/ASX 200 Index (ASX: XJO) bank stock's reliable, twice-yearly dividend payments. You'll have enjoyed some strong capital gains as well.

Now, if you turn the clock back five years, to market close on 20 March 2020, you may recall that very few people were buying shares at that time. Not for passive income. And not for capital gains.

This was during the early months of the global COVID-19 pandemic, after all. And most ASX 200 stocks had been in freefall for the past month.

But if you were among the brave few to wade in and buy the dip in ANZ shares when there was blood in the streets, here's what a $10,000 investment would be worth today.

Five years of passive income from ANZ shares

Five years ago, you could have picked ANZ shares for $15.89 apiece.

That means for $10,000, you could have bought 629 shares in the ASX 200 bank stock with a bit of pocket change left over.

At market close on Thursday those same shares were trading for $29.16 each. Meaning your 629 shares would now be worth $18,341.64.

That's $8,341.64 in capital gains.

So, how about that passive income?

Well, if you bought and held onto those shares since March 2020, you would have received 10 ANZ dividend payments by now. And with the exception of the past three dividends, which were franked at 70%, 65%, and 56%, respectively, those dividends have come fully franked.

That means you should be able to hold onto more of that passive income at tax time.

All told, those 10 dividend payouts work out to $6.89 a share.

My trusty calculator then tells me the 629 ANZ shares you bought for $10,000 five years ago will already have returned $4,333.81 in passive income.

Adding that back into yesterday's closing price of $29.16, the accumulated value of ANZ stock bought on 20 March 2020 has soared to $36.05 a share.

Those shares then will have delivered a combined passive income and capital gain of $20.16 each.

And the 629 shares you acquired for $10,000 would have returned a total of $22,675.45. Or a gain of 127%.

As for investors buying the ASX 200 bank stock today, at Thursday's closing price, ANZ shares trade on a partly franked trailing dividend yield of 5.7%.

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 Dividend Investing

A couple makes silly chip moustache faces and take a selfie on their phone.
Dividend Investing

Looking for big income? 2 ASX dividend stocks to buy today

Good yields are hard to find these days.

Read more »

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

A 4.5% ASX dividend stock paying cash every single month

This ETF plans on paying 12 dividends a year.

Read more »

Excited couple celebrating success while looking at smartphone.
Dividend Investing

Brokers say these ASX dividend shares are top buys for income

Now could be a good time for income investors to buy these shares.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

This ASX dividend share is projected to pay an 8.5% yield by FY29

The tasty payout from this business could get even bigger…

Read more »

Two kids are selling big ideas from a lemonade stand on the side of the road for cheap!
Dividend Investing

1 ASX dividend stock down 40% I'd buy right now

This business has fallen heavily in the past few years, creating a good dividend yield.

Read more »

Money rains down on a grey city pavement while business people scramble to pick it up.
Dividend Investing

2 ASX 200 shares that could make it rain dividends

These two blue-chips are offering passive income.

Read more »

CSR share price rising asx share price represented my man in hard hat giving thumbs up
Dividend Investing

Buy BHP and these ASX dividend shares next week

Analysts think the Big Australian and these income stocks are buys.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

Buy 602 CBA shares for $3,000 of passive income

Let's see what it would take to make meaningful income from the banking giant.

Read more »