“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 short-term price swings. In the case of Texas Pacific Land Corp (NYSE: TPL), a buy-and-hold investment initiated in mid-2021 delivered a strong total return, driven primarily by share-price appreciation and supplemented by dividend reinvestment.
From 07/19/2021 through 07/16/2026, a $10,000 investment in TPL grew to $28,430.80, assuming dividends were reinvested. That equates to a total return of 184.25% and an average annual return of 23.27%.
TPL 5-Year Return Summary
| Start date: | 07/19/2021 |
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| End date: | 07/16/2026 | ||||
| Start price/share: | $155.37 | ||||
| End price/share: | $416.05 | ||||
| Starting shares: | 64.36 | ||||
| Ending shares: | 68.32 | ||||
| Dividends reinvested/share: | $13.98 | ||||
| Total return: | 184.25% | ||||
| Average annual return: | 23.27% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $28,430.80 | ||||
The result is straightforward: over this five-year period, TPL nearly tripled the original investment on a total-return basis. [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
How the Return Was Generated
TPL’s five-year outcome came from two sources:
- Capital appreciation: the share price rose from $155.37 to $416.05.
- Dividend reinvestment: a cumulative $13.98 per share in dividends was assumed to be reinvested, increasing the share count from 64.36 to 68.32.
That distinction matters. For many long-term holdings, price appreciation accounts for most of the return, while reinvested dividends add incremental compounding over time. In TPL’s case, the dividend contribution was modest relative to the stock’s price gain, but it still improved the final value of the position.
What TPL Investors Should Notice
Texas Pacific Land is not typically approached as a high-yield equity. Its appeal has historically rested more on the economics of its land and royalty interests than on current income. That is reflected in the figures here: the current annualized dividend rate of $2.40 per share implies a yield of approximately 0.58% based on the ending share price of $416.05.
Another useful measure is yield on cost, which compares the current annualized dividend to the original purchase price. Using the 2021 entry price of $155.37, the current $2.40 annualized dividend translates to a yield on cost of about 0.37%.
Those yield figures underscore an important point. TPL’s five-year total return was driven overwhelmingly by valuation gains and business performance rather than by income generation. For investors evaluating the stock today, that makes operating durability, cash generation, and capital allocation more central than headline yield.
At a Glance
What is a $10,000 investment in TPL from 2021 worth today?
$28,430.80, assuming dividends were reinvested from 07/19/2021 through 07/16/2026.
What was TPL’s total return over the period?
184.25%.
What was the average annual return?
23.27%.
How much did dividends contribute?
The calculation assumes $13.98 per share in reinvested dividends over the holding period.
Five-year return studies like this are useful because they frame performance in practical terms: initial capital, ending value, dividend contribution, and annualized return. For TPL, the takeaway is clear. A long-term holder from 2021 captured substantial total-return compounding, with the bulk of the gain coming from the stock itself rather than from dividend income.
“Though tempting, trying to time the market is a loser’s game.” — Christopher Davis
