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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 decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Las Vegas Sands Corp (NYSE: LVS)? Today, we examine the outcome of a decade-long investment into the stock back in 2012.

Start date: 11/30/2012


End date: 11/29/2022
Start price/share: $46.65
End price/share: $44.66
Starting shares: 214.36
Ending shares: 316.05
Dividends reinvested/share: $21.67
Total return: 41.15%
Average annual return: 3.51%
Starting investment: $10,000.00
Ending investment: $14,120.96

The above analysis shows the decade-long investment result worked out as follows, with an annualized rate of return of 3.51%. This would have turned a $10K investment made 10 years ago into $14,120.96 today (as of 11/29/2022). On a total return basis, that’s a result of 41.15% (something to think about: how might LVS shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Notice that Las Vegas Sands Corp paid investors a total of $21.67/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 3.16/share, we calculate that LVS has a current yield of approximately 7.08%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of 3.16 against the original $46.65/share purchase price. This works out to a yield on cost of 15.18%.

Here’s one more great investment quote before you go:
“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” — Peter Lynch