“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 be a useful test of whether a security has rewarded patient capital. In that context, BlackRock New York Municipal Income Trust (NYSE: BNY) posted a notably strong total return from late June 2021 through late June 2026, combining capital appreciation with reinvested distributions. For investors evaluating long-term return outcomes, the BNY five-year return profile stands out clearly.
Based on the figures below, a $10,000 investment in BNY on 06/29/2021 grew to $32,300.35 by 06/26/2026, assuming all distributions were reinvested. That represents a total return of 223.06% and an average annual return of 26.46% over the period.
BNY 5-Year Return Details
| Start date: | 06/29/2021 |
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| End date: | 06/26/2026 | ||||
| Start price/share: | $51.02 | ||||
| End price/share: | $143.56 | ||||
| Starting shares: | 196.00 | ||||
| Ending shares: | 225.03 | ||||
| Dividends reinvested/share: | $8.52 | ||||
| Total return: | 223.06% | ||||
| Average annual return: | 26.46% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $32,300.35 | ||||
In simple terms, BNY more than tripled the value of the original investment over the five-year period. The gain came from two sources: a sharply higher share price and the incremental share accumulation created by dividend reinvestment. Starting with 196.00 shares, the position grew to 225.03 shares as distributions were reinvested over time.
[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
How Dividend Reinvestment Affected Total Return
Dividend reinvestment is central to understanding the full BNY return outcome. Over the measured period, BlackRock New York Municipal Income Trust paid $8.52 per share in distributions that were assumed to be reinvested at the closing price on each ex-dividend date. That process increased the share count and amplified the ending value of the investment.
This distinction matters because price return alone does not capture the full economics of owning an income-producing fund. For closed-end funds and other income-oriented securities, total return is generally the more useful measure because it combines both market value changes and cash distributions.
Key Takeaways
- $10,000 invested in BNY on 06/29/2021 became $32,300.35 by 06/26/2026.
- Total return was 223.06%, assuming dividends were reinvested.
- The average annual return over the period was 26.46%.
- Reinvested distributions increased the position from 196.00 shares to 225.03 shares.
Current Yield and Yield on Cost
Using the most recent annualized dividend rate of $2.12 per share, BNY has a current yield of approximately 1.48% based on the ending share price of $143.56. That is the forward-looking income yield implied by the latest annualized payout rate and the recent market price.
A separate concept is yield on cost, which measures the current annualized dividend against the original purchase price rather than the current market price. Using the 06/29/2021 starting price of $51.02, BNY’s annualized dividend rate of $2.12 translates to a yield on cost of about 2.90%.
What Is Yield on Cost?
Yield on cost is the current annual income from an investment divided by the original purchase price. It answers a straightforward question: how much annual cash yield is the position now generating relative to the amount initially paid for it?
What The Five-Year Result Suggests
The BNY performance shown here illustrates how powerful total return can be when price appreciation and reinvested income work together. It also reinforces the importance of evaluating an income vehicle on more than headline yield alone. A modest current yield can still coincide with strong long-term results if the market value of the fund rises materially and distributions are consistently reinvested.
That said, historical return figures are most useful when separated into their underlying drivers. In BNY’s case, the majority of the five-year gain appears to have come from share price appreciation, while distributions provided an additional compounding effect. For investors reviewing similar securities, that framework can help clarify whether past performance was primarily driven by income, market revaluation, or both.
More investment wisdom to consider:
“As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.” — Benjamin Graham
