“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 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 Dominion Energy Inc (NYSE: D)? Today, we examine the outcome of a ten year investment into the stock back in 2016.
| Start date: | 01/11/2016 |
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| End date: | 01/08/2026 | ||||
| Start price/share: | $69.41 | ||||
| End price/share: | $57.80 | ||||
| Starting shares: | 144.07 | ||||
| Ending shares: | 221.96 | ||||
| Dividends reinvested/share: | $29.50 | ||||
| Total return: | 28.29% | ||||
| Average annual return: | 2.52% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,825.84 | ||||
The above analysis shows the ten year investment result worked out as follows, with an annualized rate of return of 2.52%. This would have turned a $10K investment made 10 years ago into $12,825.84 today (as of 01/08/2026). On a total return basis, that’s a result of 28.29% (something to think about: how might D shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Notice that Dominion Energy Inc paid investors a total of $29.50/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 2.67/share, we calculate that D has a current yield of approximately 4.62%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of 2.67 against the original $69.41/share purchase price. This works out to a yield on cost of 6.66%.
Another great investment quote to think about:
“Don’t wait for the perfect time, you will wait forever. Always take advantage of the time you’re given and make it perfect.” — Daymond John
