“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
A five-year holding period can be a useful test of whether a stock has rewarded patience through both price appreciation and dividend compounding. For Marriott International, Inc. (NASD: MAR), the results since mid-2021 have been notably strong. A $10,000 investment made on 06/28/2021 and held through 06/25/2026, with dividends reinvested, grew to $29,023.16.
That translates to a total return of 190.27% and an average annual return of 23.78%. The outcome reflects far more than a simple recovery trade. Over this period, Marriott stock delivered substantial share-price gains, while reinvested dividends added incremental compounding to total return.
MAR 5-Year Return Details
| Start date: | 06/28/2021 |
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| End date: | 06/25/2026 | ||||
| Start price/share: | $135.87 | ||||
| End price/share: | $378.91 | ||||
| Starting shares: | 73.60 | ||||
| Ending shares: | 76.61 | ||||
| Dividends reinvested/share: | $9.41 | ||||
| Total return: | 190.27% | ||||
| Average annual return: | 23.78% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $29,023.16 | ||||
What Drove Marriott Stock’s 5-Year Return?
The majority of the gain came from capital appreciation. Marriott’s share price rose from $135.87 to $378.91 over the period, while dividends modestly increased the ending share count from 73.60 to 76.61 through reinvestment. That distinction matters: this was primarily a stock-price-driven return, with dividends serving as a secondary contributor rather than the main source of performance.
That profile is broadly consistent with Marriott’s business model. The company is one of the world’s largest hotel operators and franchisors, with a large global portfolio of brands spanning luxury, premium, select-service, extended-stay, and timeshare-related lodging segments. Marriott is generally viewed less as a high-yield income stock and more as a travel and lodging equity tied to room demand, fee growth, global travel trends, and operating leverage across the hospitality cycle.
How Dividends Affected Total Return
Dividends still played a meaningful, if smaller, role in the final outcome. Over the five-year period shown above, Marriott paid $9.41 per share in dividends, and the return calculation assumes those cash payments were reinvested into additional shares on the ex-dividend date using the closing price.
In practical terms, dividend reinvestment increased the share count by about 4.1%, from 73.60 shares to 76.61 shares. That additional share accumulation helped lift the final portfolio value, but the investment result was overwhelmingly shaped by the stock’s substantial rise in price.
- Initial investment: $10,000
- Ending value: $29,023.16
- Total return: 190.27%
- Annualized return: 23.78%
- Main driver: share-price appreciation
- Supporting factor: reinvested dividends
Current Dividend Yield and Yield on Cost
Based on the most recent annualized dividend rate of $2.92 per share, MAR currently yields approximately 0.77% using the ending share price of $378.91. That is a relatively modest current yield, which reinforces the point that Marriott has not recently been a yield-led total return story.
Another useful metric is yield on cost, which compares the current annualized dividend to the original purchase price. Using the 06/28/2021 starting price of $135.87, the current $2.92 annualized dividend represents a yield on cost of about 2.15%.
What the 5-Year Performance Suggests
Marriott’s five-year return demonstrates how a lower-yielding stock can still generate strong total returns when earnings expectations, valuation, and business momentum align. For hotel operators and lodging stocks, the key variables often include occupancy trends, average daily rates, revenue per available room, unit growth, and management or franchise fee generation. When those factors improve together, equity performance can outpace what the dividend alone would suggest.
It also highlights the importance of separating income characteristics from total return characteristics. Marriott stock produced an excellent five-year outcome, but it did so primarily as a growth-oriented hospitality equity rather than as a classic income vehicle.
[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.” — George Soros
