“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 can reveal far more about an investment than day-to-day price swings. In the case of BlackRock New York Municipal Income Trust (NYSE: BNY), a buy-and-hold approach paired with dividend reinvestment produced a notably strong long-term total return. An investor who committed $10,000 to BNY on 07/20/2016 and held through 07/17/2026 would have seen that position grow to $50,697.64, based on the figures shown below.
BNY 10-Year Return Details
| Start date: | 07/20/2016 |
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| End date: | 07/17/2026 | ||||
| Start price/share: | $40.01 | ||||
| End price/share: | $157.13 | ||||
| Starting shares: | 249.94 | ||||
| Ending shares: | 322.59 | ||||
| Dividends reinvested/share: | $13.84 | ||||
| Total return: | 406.88% | ||||
| Average annual return: | 17.63% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $50,697.64 | ||||
The headline result is straightforward: BNY delivered a 406.88% total return over the period, equivalent to an annualized return of 17.63%. That outcome combines both capital appreciation and the effect of reinvesting distributions over time. For long-horizon investors, that distinction matters. Price return alone does not capture the full economics of an income-producing security.
[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Why Dividend Reinvestment Changed the Outcome
Dividends played a meaningful role in the 10-year BNY return profile. Over the period shown above, BlackRock New York Municipal Income Trust paid $13.84 per share in distributions that were assumed to be reinvested. That reinvestment increased the share count from 249.94 shares at the outset to 322.59 shares at the end.
That is the core mechanism behind compounding in an income-oriented holding: cash distributions buy additional shares, and those additional shares can in turn generate future distributions. The effect is often gradual in the early years and more visible over longer periods, especially when the holding period spans multiple market cycles.
- Initial investment: $10,000.00
- Ending value: $50,697.64
- Total return: 406.88%
- Ending share count rose from 249.94 to 322.59 through reinvestment
Current Yield and Yield on Cost
Based on the most recent annualized dividend rate of $2.52 per share, BNY has a current yield of approximately 1.60% using the ending share price of $157.13. Another useful lens is yield on cost, which measures the current annualized dividend against the original purchase price rather than the current market price.
Using the original entry price of $40.01 per share, BNY’s current annualized dividend implies a yield on cost of about 6.30%. That figure is relevant because it shows how income can scale relative to the original capital committed, even when the market yield on the current price appears more modest.
What This 10-Year BNY Return Illustrates
The BNY example underscores several broader principles that apply to long-term total return analysis:
- Total return matters more than price change alone. Income distributions can represent a substantial portion of long-term results.
- Reinvestment can materially increase ending wealth. A higher ending share count gives compounding more room to work.
- Time horizon affects perception. Short-term volatility can look dominant in the moment, while long-term returns often depend more on duration, reinvestment, and underlying cash generation.
- Yield should be viewed in context. Current yield, historical distributions, and yield on cost each answer different questions.
None of this guarantees that the next 10 years will resemble the last 10. But the historical result is a useful case study in how patience, reinvested distributions, and a disciplined holding period can combine to produce a strong total return outcome.
“You can’t restate a dividend.” — Malon Wilkus
