“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 longterm 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 Walt Disney Co. (NYSE: DIS)? Today, we examine the outcome of a ten year investment into the stock back in 2014.
Start date:  03/07/2014 


End date:  03/06/2024  
Start price/share:  $82.21  
End price/share:  $110.06  
Starting shares:  121.64  
Ending shares:  132.56  
Dividends reinvested/share:  $9.41  
Total return:  45.90%  
Average annual return:  3.85%  
Starting investment:  $10,000.00  
Ending investment:  $14,593.35 
As we can see, the ten year investment result worked out as follows, with an annualized rate of return of 3.85%. This would have turned a $10K investment made 10 years ago into $14,593.35 today (as of 03/06/2024). On a total return basis, that’s a result of 45.90% (something to think about: how might DIS shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Notice that Walt Disney Co. paid investors a total of $9.41/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 exdate is used for the reinvestment of a given dividend).
Based upon the most recent annualized dividend rate of .90/share, we calculate that DIS has a current yield of approximately 0.82%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of .90 against the original $82.21/share purchase price. This works out to a yield on cost of 1.00%.
One more piece of investment wisdom to leave you with:
“Price is what you pay. Value is what you get.” — Warren Buffett