“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
A 10-year holding period is a useful test of how a business has compounded shareholder value through both price appreciation and dividends. For FactSet Research Systems Inc. (NYSE: FDS), a $10,000 investment made on 07/01/2016 and held through 06/30/2026, with dividends reinvested, would have grown to $15,892.08. That equates to a total return of 58.91% and an annualized return of 4.74%.
FDS 10-Year Return Details
| Start date: | 07/01/2016 |
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| End date: | 06/30/2026 | ||||
| Start price/share: | $161.18 | ||||
| End price/share: | $230.08 | ||||
| Starting shares: | 62.04 | ||||
| Ending shares: | 69.07 | ||||
| Dividends reinvested/share: | $32.74 | ||||
| Total return: | 58.91% | ||||
| Average annual return: | 4.74% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $15,892.08 | ||||
In practical terms, the 10-year result means the investment generated moderate compounding, with dividends contributing meaningfully to the ending value. The share price rose from $161.18 to $230.08 over the period, but the final outcome was also supported by the accumulation of additional shares through dividend reinvestment.
These figures were computed using the Dividend Channel DRIP Returns Calculator, assuming dividends were reinvested at the closing price on each ex-dividend date.
What Drove the Return
Total return combines two components: capital appreciation and dividends. For FactSet Research Systems, both mattered over this period.
- Price appreciation: The stock increased from $161.18 to $230.08 per share.
- Dividend income: Shareholders received $32.74 per share in dividends over the period examined.
- Reinvestment effect: Starting shares of 62.04 grew to 69.07 shares through dividend reinvestment.
This distinction is important because a stock’s headline price gain can understate the actual shareholder experience. Reinvested dividends increase share count over time, allowing future dividends to be earned on a larger base. That compounding effect is often incremental rather than dramatic in any single year, but it becomes more visible over longer holding periods.
Dividend Yield and Yield on Cost
Based on the most recent annualized dividend rate of $4.64 per share, FDS has a current yield of approximately 2.02% using the ending share price of $230.08.
Another useful measure is yield on cost, which compares the current annualized dividend with the original purchase price. Using the starting price of $161.18 per share, the current $4.64 annualized dividend implies a yield on cost of about 2.88%.
Yield on cost does not indicate what a new buyer would earn at today’s price, but it can help illustrate how dividend growth changes the economics of a long-held position.
How to Interpret a 4.74% Annualized Return
An annualized return of 4.74% over a full decade is positive, but it also shows that even durable, established businesses can deliver uneven or modest long-run returns depending on the entry point, valuation, and pace of earnings growth. In other words, business quality and shareholder return are related, but they are not identical.
For a company such as FactSet Research Systems, which is known for subscription-based financial data, analytics, and workflow tools, recurring revenue characteristics can support resilience. Even so, the return earned by shareholders over any 10-year window depends not just on business stability, but also on how much investors initially paid for that stability and how the market repriced the shares over time.
Key Takeaways
- A $10,000 investment in FactSet Research Systems on 07/01/2016 grew to $15,892.08 by 06/30/2026 with dividends reinvested.
- The investment produced a 58.91% total return, or 4.74% annualized.
- Dividends played a meaningful role, increasing the share count from 62.04 to 69.07.
- At an annualized dividend rate of $4.64, the stock’s current yield is approximately 2.02% based on the ending price.
- Using the original purchase price, the current dividend implies a yield on cost of about 2.88%.
One more investment quote to leave you with:
“Games are won by players who focus on the playing field, not by those whose eyes are glued to the scoreboard.” — Warren Buffett
