“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 outcome than short-term price moves. For shares of Expeditors International of Washington, Inc. (NYSE: EXPD), the buy-and-hold result over the past five years was positive, with total return supported by both share-price appreciation and reinvested dividends. The figures below show how a $10,000 investment in EXPD performed from 07/21/2021 through 07/20/2026.
EXPD 5-Year Return Details
| Start date: | 07/21/2021 |
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| End date: | 07/20/2026 | ||||
| Start price/share: | $128.94 | ||||
| End price/share: | $177.37 | ||||
| Starting shares: | 77.56 | ||||
| Ending shares: | 82.17 | ||||
| Dividends reinvested/share: | $7.11 | ||||
| Total return: | 45.74% | ||||
| Average annual return: | 7.82% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $14,571.24 | ||||
What a $10,000 Investment in EXPD Became
Based on the figures above, a $10,000 investment in Expeditors five years ago grew to $14,571.24 by 07/20/2026, assuming dividends were reinvested. That equates to a 45.74% cumulative total return and an annualized return of 7.82%.
In practical terms, the outcome reflects two distinct drivers. First, EXPD shares rose from $128.94 to $177.37 over the measurement period. Second, shareholders received dividends that, when reinvested, increased the share count from 77.56 to 82.17. The combination of capital appreciation and reinvested income is what lifted the ending value above the simple price-return result.
[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
How Dividends Contributed to Total Return
Over the five-year period, Expeditors International of Washington, Inc. paid a cumulative $7.11 per share in dividends. Because the calculation assumes automatic dividend reinvestment, those cash distributions were used to purchase additional EXPD shares rather than being taken as income. This is an important distinction: total return captures both the stock’s price change and the compounding effect of reinvested dividends.
For dividend-paying stocks, total return is generally the more useful measure than price return alone. A stock can post moderate price appreciation while still producing a stronger overall investment result through steady dividend payments and reinvestment over time.
Current Yield and Yield on Cost
Based on the most recent annualized dividend rate of $1.62 per share, EXPD has a current yield of approximately 0.91% using the ending share price shown above. Measured against the original purchase price of $128.94 per share, that same annualized dividend implies a yield on cost of about 1.26%.
Yield on cost can be a useful reference point for long-term holders because it shows how the current dividend stream compares with the original entry price. However, it should be viewed as a historical lens rather than a valuation tool. For current capital-allocation decisions, the more relevant measures are the stock’s present valuation, forward earnings power, cash generation, and current yield.
Key Takeaways From This 5-Year Buy-and-Hold Period
The EXPD five-year return profile can be summarized as follows:
- Share-price appreciation was the primary contributor to returns.
- Dividend reinvestment added incremental share accumulation and enhanced compounding.
- The annualized return of 7.82% was solid, though not driven by a high dividend yield.
- The result underscores why total return analysis is more informative than looking at price alone.
Expeditors is widely known as an asset-light global logistics and freight forwarding company, and businesses with that profile can experience earnings variability tied to trade volumes, freight rates, and broader economic conditions. That operating sensitivity helps explain why long-term holding periods often provide a clearer view of shareholder outcomes than short windows shaped by cyclical swings.
Another Buffett observation remains relevant when evaluating any multi-year equity investment:
“Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.” — Warren Buffett
