“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
CoStar Group, Inc. (NASD: CSGP) delivered a positive long-term return over the past decade, illustrating how a growth-oriented stock can compound value even without paying dividends. Based on the price performance from April 29, 2016 through April 28, 2026, a $10,000 investment in CoStar Group grew to $18,217.91, representing a total return of 82.26% and an average annual return of 6.18%.
That result does not suggest a straight-line path. Over any 10-year holding period, investors typically experience multiple cycles in sentiment, valuation, and operating expectations. What matters in a long-horizon analysis is the ending value created over time, the rate at which capital compounded, and the business characteristics that supported that outcome.
CSGP 10-Year Return at a Glance
| Start date: | 04/29/2016 |
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| End date: | 04/28/2026 | ||||
| Start price/share: | $19.73 | ||||
| End price/share: | $35.96 | ||||
| Starting shares: | 506.84 | ||||
| Ending shares: | 506.84 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 82.26% | ||||
| Average annual return: | 6.18% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $18,217.91 | ||||
What Drove the 10-Year Return
In this case, the entire gain came from share-price appreciation rather than income. CoStar Group does not appear here as a dividend compounding story; instead, it is an example of equity returns generated through market re-rating and business growth expectations. Because no dividends were paid or reinvested over the measured period, the change in portfolio value simply tracked the increase in the stock price from $19.73 to $35.96.
That distinction matters. For dividend-paying stocks, total return often reflects both price appreciation and cash distributions reinvested over time. For CoStar Group, the 10-year outcome depended solely on capital appreciation, which can make returns more sensitive to changes in operating momentum, valuation multiples, and investor sentiment.
Key Takeaways From CoStar Group’s Long-Term Performance
- Total return: A $10,000 investment grew to $18,217.91 over the 10-year period.
- Annualized return: The average annual return was 6.18%, which is the more useful figure for evaluating long-term compounding.
- No dividend contribution: Ending shares were unchanged at 506.84 because no dividends were reinvested.
- Return source: Performance was entirely driven by the stock’s price increase.
Why Annualized Return Matters
Total return is intuitive, but annualized return offers a clearer basis for comparison across investments and time periods. An 82.26% cumulative gain over 10 years sounds substantial, yet the annualized figure of 6.18% better captures the actual compounding rate. That makes it easier to compare CoStar Group’s long-term performance with broad equity benchmarks, alternative sectors, or other individual stocks over similar horizons.
Annualized return also helps frame expectations. A stock can deliver a respectable decade-long outcome without posting exceptional year-by-year performance. Conversely, a few strong years can mask a weaker long-run compound rate. Looking at both figures together provides a more complete view.
As shown above, the decade-long investment result was positive, turning a $10,000 investment made 10 years ago into $18,217.91 as of 04/28/2026. On a total return basis, that amounts to 82.26%, with an annualized return of 6.18%. These figures were computed using the Dividend Channel DRIP Returns Calculator.
“In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.” — Peter Lynch
