“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
A 10-year holding period can reveal far more about a stock’s compounding power than short-term price moves. For Brown & Brown Inc (NYSE: BRO), the long-term total return story has been strong: a $10,000 investment made in late May 2016 would have grown to $34,387.34 by 05/28/2026, assuming dividends were reinvested.
That outcome reflects both share price appreciation and dividend reinvestment. Over the period, Brown & Brown delivered a total return of 243.92%, equal to an average annual return of 13.15%. The result illustrates how steady compounding can turn moderate annual gains into a materially larger portfolio value over time.
Brown & Brown 10-Year Return Details
| Start date: | 05/31/2016 |
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| End date: | 05/28/2026 | ||||
| Start price/share: | $18.03 | ||||
| End price/share: | $56.84 | ||||
| Starting shares: | 554.63 | ||||
| Ending shares: | 605.07 | ||||
| Dividends reinvested/share: | $4.15 | ||||
| Total return: | 243.92% | ||||
| Average annual return: | 13.15% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $34,387.34 | ||||
The calculation above indicates that Brown & Brown more than tripled an initial $10,000 investment over the past decade. In practical terms, the combination of capital appreciation and reinvested cash distributions added $24,387.34 in value over the period. These figures were computed using the Dividend Channel DRIP Returns Calculator.
What Drove the Return
Brown & Brown is an insurance brokerage and services company, a business model that often attracts long-term investors because it can combine recurring revenue characteristics with acquisition-driven growth. For a stock such as BRO, total return typically comes from three sources:
- Share price appreciation: the stock rose from $18.03 to $56.84 over the measurement period.
- Cash dividends: Brown & Brown paid $4.15 per share in cumulative dividends over the 10 years covered here.
- Dividend reinvestment: those distributions, when reinvested, increased the share count from 554.63 to 605.07.
This distinction matters. Price return alone can understate the full economic result, especially over long periods when reinvested dividends buy additional shares that can themselves compound.
Dividend Yield and Yield on Cost
Based on the most recent annualized dividend rate of $0.66 per share, BRO has a current yield of approximately 1.16% using the ending share price of $56.84. That is a modest current income yield, which is typical of companies where a larger share of the total return has historically come from business growth and stock price appreciation rather than from a high payout.
Another useful lens is yield on cost, which compares the current annualized dividend to the original purchase price. Using the same $0.66 annualized dividend and the 2016 entry price of $18.03, the yield on cost works out to 3.66%.
Yield on cost is best viewed as a way to illustrate dividend growth relative to the original investment, not as a measure of what a new investor would earn today. For new capital, the relevant figure remains the current dividend yield based on today’s share price.
Key Takeaways
- Starting investment: $10,000 on 05/31/2016
- Ending value: $34,387.34 on 05/28/2026
- Total return: 243.92%
- Annualized return: 13.15%
- Importance of reinvestment: dividend reinvestment increased the ending share count and contributed to overall compounding
For long-term holders, Brown & Brown’s last decade shows how consistent business performance, a rising stock price, and reinvested dividends can work together over time. The result is a useful reminder that durable wealth creation in equities often comes from allowing compounding to operate over many years rather than focusing narrowly on short-term volatility.
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” — Warren Buffett
