“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into LyondellBasell Industries NV (NYSE: LYB)? Today, we examine the outcome of a five year investment into the stock back in 2021.
| Start date: | 01/20/2021 |
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| End date: | 01/16/2026 | ||||
| Start price/share: | $94.38 | ||||
| End price/share: | $50.91 | ||||
| Starting shares: | 105.95 | ||||
| Ending shares: | 147.33 | ||||
| Dividends reinvested/share: | $28.87 | ||||
| Total return: | -24.99% | ||||
| Average annual return: | -5.60% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $7,500.08 | ||||
The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -5.60%. This would have turned a $10K investment made 5 years ago into $7,500.08 today (as of 01/16/2026). On a total return basis, that’s a result of -24.99% (something to think about: how might LYB shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Notice that LyondellBasell Industries NV paid investors a total of $28.87/share in dividends over the 5 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 5.48/share, we calculate that LYB has a current yield of approximately 10.76%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of 5.48 against the original $94.38/share purchase price. This works out to a yield on cost of 11.40%.
Here’s one more great investment quote before you go:
“Buy not on optimism, but on arithmetic.” — Benjamin Graham
