“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade 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 two-decade investment into the stock back in 2005.
| Start date: | 12/12/2005 |
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| End date: | 12/09/2025 | ||||
| Start price/share: | $32.70 | ||||
| End price/share: | $45.22 | ||||
| Starting shares: | 305.81 | ||||
| Ending shares: | 486.57 | ||||
| Dividends reinvested/share: | $25.69 | ||||
| Total return: | 120.03% | ||||
| Average annual return: | 4.02% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $22,000.41 | ||||
As we can see, the two-decade investment result worked out as follows, with an annualized rate of return of 4.02%. This would have turned a $10K investment made 20 years ago into $22,000.41 today (as of 12/09/2025). On a total return basis, that’s a result of 120.03% (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 $25.69/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 1.88/share, we calculate that TAP has a current yield of approximately 4.16%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of 1.88 against the original $32.70/share purchase price. This works out to a yield on cost of 12.72%.
One more investment quote to leave you with:
“A 10% decline in the market is fairly common, it happens about once a year. Investors who realize this are less likely to sell in a panic, and more likely to remain invested, benefitting from the wealthbuilding power of stocks.” — Christopher Davis
