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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: 12/16/2011


End date: 12/15/2021
Start price/share: $25.78
End price/share: $32.20
Starting shares: 387.90
Ending shares: 398.48
Dividends reinvested/share: $1.00
Total return: 28.31%
Average annual return: 2.52%
Starting investment: $10,000.00
Ending investment: $12,827.59

As shown above, the ten year investment result worked out as follows, with an annualized rate of return of 2.52%. This would have turned a $10K investment made 10 years ago into $12,827.59 today (as of 12/15/2021). On a total return basis, that’s a result of 28.31% (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 $1.00/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 1/share, we calculate that DISH has a current yield of approximately 3.11%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of 1 against the original $25.78/share purchase price. This works out to a yield on cost of 12.06%.

One more investment quote to leave you with:
“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