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“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Molson Coors Beverage Co (NYSE: TAP)? Today, we examine the outcome of a twenty year investment into the stock back in 2002.

Start date: 06/21/2002


End date: 06/17/2022
Start price/share: $30.43
End price/share: $50.37
Starting shares: 328.62
Ending shares: 495.18
Dividends reinvested/share: $21.32
Total return: 149.42%
Average annual return: 4.68%
Starting investment: $10,000.00
Ending investment: $24,964.84

The above analysis shows the twenty year investment result worked out as follows, with an annualized rate of return of 4.68%. This would have turned a $10K investment made 20 years ago into $24,964.84 today (as of 06/17/2022). On a total return basis, that’s a result of 149.42% (something to think about: how might TAP shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Notice that Molson Coors Beverage Co paid investors a total of $21.32/share in dividends over the 20 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 1.52/share, we calculate that TAP has a current yield of approximately 3.02%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of 1.52 against the original $30.43/share purchase price. This works out to a yield on cost of 9.92%.

One more piece of investment wisdom to leave you with:
“When everyone is going right, look left.” — Sam Zell