During January 2022, Macquarie shares reached an all-time high of $217.32 before freefalling thereafter. While the bank’s shares have somewhat recovered, they are still some way off moving again into uncharted territory.
Nonetheless, let’s wind the clock back and see how much an investor would have made if they had invested $10,000 in Macquarie shares a decade ago.
How much would your initial investment be worth now?
If you spent $10,000 on Macquarie shares exactly 10 years ago, you would have picked them up for $27.07 apiece. The purchase would deliver approximately 369 shares without reinvesting the dividends.
Looking at today’s closing price, the Macquarie share price finished at $189.44. This means those 369 shares would be worth $69,903.36 (369 shares x $189.44).
In percentage terms, the initial investment implies a yearly average return of 21.46%. Comparing that to the ASX 200, the benchmark index has given back 5.19% over a 10-year period.
And the dividends?
Over the course of the last decade, Macquarie has made a total of 20 dividend payments from 2012 to 2022. Its most recent dividend distributions were significantly reduced due to the pandemic severely affecting its operations and bottom line.
Adding those 20 dividend payments gives us an amount of $40.07 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $14,785.83 (369 shares x 40.07).
When putting both the initial investment gains and dividend distribution, an investor would have made $84,689.19.
Over the past 12 months, the Macquarie share price has travelled 25% higher but is down almost 8% year to date.
Macquarie presides a market capitalisation of roughly $72.6 billion and has more than 383 million shares on its registry.
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