“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
A long-term holding period can reveal far more about a stock’s compounding power than any short stretch of market volatility. In the case of Equifax Inc (NYSE: EFX), a 20-year buy-and-hold investment from May 2006 through April 2026 produced a solid total return, supported by both share-price appreciation and dividend reinvestment. For investors evaluating long-duration equity returns, EFX offers a useful example of how compounding works over time.
EFX 20-Year Return Details
| Start date: | 05/01/2006 |
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| End date: | 04/29/2026 | ||||
| Start price/share: | $38.06 | ||||
| End price/share: | $172.56 | ||||
| Starting shares: | 262.74 | ||||
| Ending shares: | 320.43 | ||||
| Dividends reinvested/share: | $21.53 | ||||
| Total return: | 452.94% | ||||
| Average annual return: | 8.92% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $55,265.95 | ||||
The result is straightforward: a $10,000 investment in EFX on 05/01/2006 would have grown to $55,265.95 by 04/29/2026, assuming dividends were reinvested. That represents a total return of 452.94% and an average annual return of 8.92%. [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
What Drove the 20-Year Return in Equifax Stock
EFX’s long-term return came from two sources:
- Share-price appreciation, from $38.06 to $172.56 per share
- Cash dividends, with $21.53 per share paid over the period and assumed to be reinvested
This distinction matters. Price appreciation generated the largest part of the gain, but dividend reinvestment added incremental shares over time, increasing the ending share count from 262.74 to 320.43. That is a clear illustration of how reinvested income can enhance compounding, even when a stock is not primarily viewed as a high-yield name.
For the purpose of these calculations, dividends are assumed to be reinvested into additional shares on the ex-dividend date using the closing price on that date. Over a multi-decade period, that reinvestment effect can materially influence ending value.
Current Dividend Yield and Yield on Cost
Based on the most recent annualized dividend rate of $2.24 per share, EFX has a current yield of approximately 1.30% using the stated end price of $172.56. That is a modest current income profile by market standards, which reinforces that Equifax’s long-term return case has depended more on business growth and valuation than on dividend income alone.
Yield on cost offers a different perspective. Measured against the original purchase price of $38.06 per share, the current annualized dividend of $2.24 implies a yield on cost of 5.89%. This metric does not indicate the return available to a new buyer today, but it does show how dividend growth can improve the income generated from a long-held position.
Key Takeaways From a 20-Year Buy-and-Hold in EFX
The main lessons from this Equifax buy-and-hold result are concise:
- Long holding periods can smooth out shorter-term market volatility.
- Total return is more informative than price return alone.
- Dividend reinvestment can meaningfully increase ending share count and portfolio value.
- A modest-yield stock can still produce strong long-term results if earnings and cash flows support sustained business expansion.
Equifax is best known as a credit reporting and analytics company, and that business mix gives the stock a different profile from utilities, telecoms, or other income-oriented sectors. In practice, that means EFX has historically been more sensitive to expectations around growth, margins, data-driven services, and broader credit-market activity than to headline dividend yield alone.
Another useful point is that a 20-year annualized return of 8.92% may not appear extraordinary in any single year, yet the compounding outcome is substantial. That is the mathematics of long-term equity ownership: moderate annual returns, sustained over decades, can produce large absolute gains.
Another investment principle worth keeping in view:
“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
