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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into EQT Corp (NYSE: EQT)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 06/10/2019


End date: 06/07/2024
Start price/share: $17.31
End price/share: $40.54
Starting shares: 577.70
Ending shares: 608.36
Dividends reinvested/share: $1.56
Total return: 146.63%
Average annual return: 19.80%
Starting investment: $10,000.00
Ending investment: $24,664.32

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 19.80%. This would have turned a $10K investment made 5 years ago into $24,664.32 today (as of 06/07/2024). On a total return basis, that’s a result of 146.63% (something to think about: how might EQT shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Notice that EQT Corp paid investors a total of $1.56/share in dividends over the 5 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 .63/share, we calculate that EQT has a current yield of approximately 1.55%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of .63 against the original $17.31/share purchase price. This works out to a yield on cost of 8.95%.

One more investment quote to leave you with:
“In investing, what is comfortable is rarely profitable.” — Robert Arnott