“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 reveal far more about an investment than day-to-day price moves. For C.H. Robinson Worldwide, Inc. (NASD: CHRW), a $10,000 investment made on 07/30/2021 and held through 07/29/2026 produced a strong total return, particularly when dividends were reinvested. The result illustrates how share-price appreciation and dividend compounding can work together over time.
CHRW 5-Year Return Summary
| Start date: | 07/30/2021 |
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| End date: | 07/29/2026 | ||||
| Start price/share: | $89.17 | ||||
| End price/share: | $173.75 | ||||
| Starting shares: | 112.15 | ||||
| Ending shares: | 125.73 | ||||
| Dividends reinvested/share: | $11.97 | ||||
| Total return: | 118.45% | ||||
| Average annual return: | 16.91% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $21,840.29 | ||||
Over this five-year period, the investment more than doubled. A starting balance of $10,000 grew to $21,840.29, equivalent to a 118.45% total return and an annualized return of 16.91%. Those figures include the effect of reinvesting dividends, which increased the share count from 112.15 to 125.73 over time.
Put simply, the outcome was driven by two return sources:
- Capital appreciation, as CHRW rose from $89.17 per share to $173.75.
- Dividend income, which was assumed to be reinvested into additional shares on each ex-dividend date.
[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Why Dividends Matter in CHRW Total Return
Dividends are a meaningful component of long-term equity returns, especially over multi-year holding periods. In this case, C.H. Robinson Worldwide, Inc. paid a cumulative $11.97 per share in dividends during the period examined above. Reinvestment converted that cash flow into additional shares, which then participated in subsequent price appreciation.
This is an important distinction. Looking only at the stock price change understates the full economic result. Total return captures both market value gains and cash distributions, making it the more complete measure of performance for dividend-paying stocks.
Current Yield and Yield on Cost
Based upon the most recent annualized dividend rate of $2.52 per share, CHRW has a current yield of approximately 1.45%. A related measure is yield on cost, which compares the current annual dividend to the original purchase price rather than the current market price.
Using the original entry price of $89.17 per share, the current annualized dividend of $2.52 implies a yield on cost of about 1.63%.
That distinction can be summarized as follows:
- 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 determine what a stock is worth today, but it can help illustrate how dividend income has evolved relative to the initial capital committed.
What the 5-Year CHRW Performance Shows
The five-year CHRW result highlights a basic but important investing principle: long holding periods can shift attention away from short-term volatility and toward business performance, capital allocation, and cash returns to shareholders. When a company combines price appreciation with consistent dividends, reinvestment can materially improve ending value.
That does not mean future returns will resemble the past five years. It does mean that evaluating CHRW through a total-return lens provides a clearer view of what shareholders actually earned over the period.
“The person who starts simply with the idea of getting rich won’t succeed; you must have a larger ambition.” — John Rockefeller
