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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into DISH Network Corp (NASD: DISH)? Today, we examine the outcome of a ten year investment into the stock back in 2011.

Start date: 02/10/2011


End date: 02/09/2021
Start price/share: $23.49
End price/share: $32.28
Starting shares: 425.71
Ending shares: 473.48
Dividends reinvested/share: $3.00
Total return: 52.84%
Average annual return: 4.33%
Starting investment: $10,000.00
Ending investment: $15,282.45

As we can see, the ten year investment result worked out as follows, with an annualized rate of return of 4.33%. This would have turned a $10K investment made 10 years ago into $15,282.45 today (as of 02/09/2021). On a total return basis, that’s a result of 52.84% (something to think about: how might DISH shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Notice that DISH Network Corp paid investors a total of $3.00/share in dividends over the 10 holding period, marking a second component of the total return beyond share price change alone. Much like watering a tree, reinvesting dividends can help an investment to grow over time — for the above calculations we assume dividend reinvestment (and for this exercise the closing price on ex-date is used for the reinvestment of a given dividend).

Based upon the most recent annualized dividend rate of /share, we calculate that DISH has a current yield of approximately 0.00%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of against the original $23.49/share purchase price. This works out to a yield on cost of 0.00%.

Here’s one more great investment quote before you go:
“The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you’re wrong.” — William O’Neil