“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 is often a useful test of whether a stock’s return profile is being driven by a durable business, steady cash generation, and shareholder distributions rather than by short-term market moves. That framework is particularly relevant for utility equities, where total return frequently depends on a combination of moderate price appreciation and consistent dividend income. Looking back to 2021, WEC Energy Group Inc (NYSE: WEC) provides a clear example of how that dynamic has played out over a full five-year span.
Using a starting investment of $10,000 on 06/04/2021 and assuming dividends were reinvested, the position grew to $13,914.45 as of 06/03/2026. That represents a total return of 39.17%, or an average annual return of 6.83%.
WEC 5-Year Return Details
| Start date: | 06/04/2021 |
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| End date: | 06/03/2026 | ||||
| Start price/share: | $93.59 | ||||
| End price/share: | $110.05 | ||||
| Starting shares: | 106.85 | ||||
| Ending shares: | 126.46 | ||||
| Dividends reinvested/share: | $16.21 | ||||
| Total return: | 39.17% | ||||
| Average annual return: | 6.83% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $13,914.45 | ||||
The result is notable less for outsized capital appreciation than for the balance between stock performance and income. WEC shares rose from $93.59 to $110.05 over the period, but the full return was meaningfully enhanced by reinvested dividends. That distinction matters when evaluating regulated utilities, where a substantial portion of long-term shareholder return often comes from distributions rather than rapid earnings multiple expansion.
[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
How Dividend Reinvestment Affected the Outcome
Over the five-year holding period, WEC Energy Group paid a total of $16.21 per share in dividends. Assuming those cash payments were reinvested, the original 106.85 shares increased to 126.46 shares by the end of the measurement period. In other words, part of the ending value came not just from a higher stock price, but from owning more shares.
This is the mechanics of total return in a dividend-paying stock:
- Price return reflects the change in the share price from purchase to sale.
- Dividend return reflects cash distributions received during the holding period.
- Reinvestment compounds those distributions by converting them into additional shares.
For slower-growing, income-oriented sectors, reinvestment can account for a large share of long-term performance. That is particularly true when the business has a record of regular dividend payments and the holding period spans several years.
Current Yield and Yield on Cost
Based on the most recent annualized dividend rate of $3.81 per share, WEC has a current yield of approximately 3.46%, using the ending share price of $110.05. Another useful measure is yield on cost, which compares the current annual dividend with the original purchase price rather than the current market price.
Using the 06/04/2021 purchase price of $93.59, the $3.81 annualized dividend equates to a yield on cost of about 4.07%.
That figure is worth distinguishing from current yield:
- Current yield: annual dividend divided by the current share price.
- Yield on cost: annual dividend divided by the original purchase price.
Yield on cost does not measure what a new investor would earn at today’s price, but it can help illustrate how dividend growth changes the income profile of a long-held position.
What the 5-Year WEC Return Suggests
WEC Energy Group is generally viewed through the lens of defensiveness, income, and regulated utility cash flow rather than cyclical upside. A 39.17% five-year total return, annualizing to 6.83%, fits that profile: respectable compounding, supported by dividends, without requiring aggressive assumptions about growth.
That pattern also highlights a broader point about utility investing. For many companies in the sector, the investment case rests on a combination of rate-base growth, constructive regulation, capital deployment into energy infrastructure, and the ability to sustain and raise dividends over time. Share price movement matters, but the return stream is often steadier and more income-driven than in higher-volatility sectors.
Another investment quote worth considering in that context:
“While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.” — Seth Klarman
