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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 Assurant Inc (NYSE: AIZ)? Today, we examine the outcome of a decade-long investment into the stock back in 2013.

Start date: 01/09/2013


End date: 01/06/2023
Start price/share: $35.44
End price/share: $128.59
Starting shares: 282.17
Ending shares: 343.34
Dividends reinvested/share: $19.55
Total return: 341.50%
Average annual return: 16.01%
Starting investment: $10,000.00
Ending investment: $44,134.43

As shown above, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 16.01%. This would have turned a $10K investment made 10 years ago into $44,134.43 today (as of 01/06/2023). On a total return basis, that’s a result of 341.50% (something to think about: how might AIZ shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Notice that Assurant Inc paid investors a total of $19.55/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 2.8/share, we calculate that AIZ has a current yield of approximately 2.18%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of 2.8 against the original $35.44/share purchase price. This works out to a yield on cost of 6.15%.

Another great investment quote to think about:
“People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.” — Peter Lynch