“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Kimco Realty Corp (NYSE: KIM)? Today, we examine the outcome of a ten year investment into the stock back in 2015.
| Start date: | 03/06/2015 |
|
|||
| End date: | 03/05/2025 | ||||
| Start price/share: | $25.29 | ||||
| End price/share: | $21.71 | ||||
| Starting shares: | 395.41 | ||||
| Ending shares: | 638.89 | ||||
| Dividends reinvested/share: | $9.39 | ||||
| Total return: | 38.70% | ||||
| Average annual return: | 3.32% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $13,865.06 | ||||
The above analysis shows the ten year investment result worked out as follows, with an annualized rate of return of 3.32%. This would have turned a $10K investment made 10 years ago into $13,865.06 today (as of 03/05/2025). On a total return basis, that’s a result of 38.70% (something to think about: how might KIM shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Notice that Kimco Realty Corp paid investors a total of $9.39/share in dividends over the 10 holding period, marking a second component of the total return beyond share price change alone. Much like watering a tree, reinvesting dividends can help an investment to grow over time — for the above calculations we assume dividend reinvestment (and for this exercise the closing price on ex-date is used for the reinvestment of a given dividend).
Based upon the most recent annualized dividend rate of 1/share, we calculate that KIM has a current yield of approximately 4.61%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of 1 against the original $25.29/share purchase price. This works out to a yield on cost of 18.23%.
One more investment quote to leave you with:
“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” — Jim Cramer
