A $ 10,000 investment in RJF in 2011 really worked
“Only buy something that you would be perfectly happy to keep if the market closed for 10 years.”
– Warren Buffett
One of the most important things investors can learn from Warren Buffett is how they approach their time horizon for an investment in a stock under consideration. Because immediately after buying a stock of a given stock, investors will then be able to check the day-to-day (and even minute-to-minute) market value. Some days the stock market will be up, others will go down. These daily fluctuations can often distract from the long-term view. Today we take a look at the result of a ten-year holding period for an investor who was considering Raymond James Financial Inc (NYSE: RJF) in 2011, bought the stock, ignored the ups and downs in the market, and just held on until today.
|Starting price / share:||$ 32.36|
|Final price / share:||$ 132.90|
|End of actions:||356.41|
|Dividends reinvested / unit:||$ 8.94|
|Average annual return:||16.83%|
|Initial investment:||$ 10,000.00|
|End of investment:||$ 47,374.40|
The above analysis shows that the ten-year investment result has performed exceptionally well, with an annualized rate of return of 16.83%. This would have turned a $ 10,000 investment made 10 years ago into $ 47,374.40 today (at 03/06/2021). On a total return basis, this is a result of 373.67% (something to consider: how might RJF stocks behave over the course of the following 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Dividends are always an important investment factor to consider, and Raymond James Financial Inc has paid out $ 8.94 / share in dividends to shareholders over the past 10 years we looked at above. Lots of investors only invest in stocks that pay dividends, so this component of total return is always an important consideration. Automated reinvestment of dividends in additional stocks can be a great way for an investor to compound their returns. The above calculations are made assuming that dividends received over time are reinvested (the calculations use the closing price on the ex-date).
Based on the most recent annualized dividend rate of 1.56 / share, we calculate that RJF has a current yield of around 1.17%. Another interesting data point that we can look at is “return on cost” – in other words, we can express the current annualized dividend of 1.56 from the original purchase price of $ 32.36 / share. . This corresponds to a return on cost of 3.62%.
Another investment quote to leave you with:
“Your investor’s advantage isn’t something you get from the experts on Wall Street. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries that you are already familiar with. – Peter Lynch