“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 is a practical way to evaluate how a stock has translated business performance, dividends, and valuation changes into shareholder returns. For Wynn Resorts Ltd (NASD: WYNN), a $10,000 investment made on 09/17/2021 would have produced a modest positive total return by 09/16/2026, with dividends reinvested.
The key takeaway is straightforward: Wynn Resorts stock generated a 4.83% total return over the period, equivalent to an annualized return of 0.95%. That means the original $10,000 investment would have grown to $10,484.11. While the ending share price was only slightly above the starting price, reinvested dividends accounted for a meaningful portion of the overall gain.
Wynn Resorts 5-Year Return Summary
| Start date: | 09/17/2021 |
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| End date: | 09/16/2026 | ||||
| Start price/share: | $83.29 | ||||
| End price/share: | $84.23 | ||||
| Starting shares: | 120.06 | ||||
| Ending shares: | 124.46 | ||||
| Dividends reinvested/share: | $3.50 | ||||
| Total return: | 4.83% | ||||
| Average annual return: | 0.95% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,484.11 | ||||
The result illustrates the difference between price return and total return. WYNN shares rose from $83.29 to $84.23 over the period, a relatively small capital gain. The larger contributor to the final value came from cash distributions that were assumed to be reinvested, increasing the share count from 120.06 to 124.46.
What Drove the Return?
For Wynn Resorts, the five-year outcome was shaped by two main factors:
- Limited share price appreciation: The ending stock price was only modestly above the purchase price, which constrained capital gains.
- Dividend reinvestment: Total dividends of $3.50 per share, when reinvested, added incremental shares and helped lift the ending value.
This is a useful reminder that for many dividend-paying stocks, investor outcomes can differ materially depending on whether distributions are taken in cash or reinvested. Even when price performance is subdued, reinvestment can still contribute meaningfully to compound return.
[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Dividend Reinvestment and Share Growth
Over the past five years, Wynn Resorts Ltd paid $3.50 per share in dividends. In this analysis, each dividend is assumed to be reinvested into additional shares at the closing price on the ex-dividend date. That assumption matters because it captures the full economic effect of distributions, rather than treating dividends as separate cash flows outside the investment.
Under that framework, the position grew from 120.06 shares to 124.46 shares. In other words, reinvestment increased ownership even though the stock’s price performance was muted. That is the central reason total return came in ahead of the price return alone.
Current Yield and Yield on Cost
Using the most recent annualized dividend rate of $1.00 per share, WYNN has a current dividend yield of approximately 1.19%, based on the $84.23 ending share price. Measured against the original purchase price of $83.29, that equates to a yield on cost of about 1.43%.
These two figures answer different questions:
- Current yield shows the income rate available at today’s share price.
- Yield on cost shows the current annual dividend relative to the original entry price.
Yield on cost can be a useful reference point for long-held positions, but it should not replace current valuation analysis. Future returns will depend on Wynn Resorts’ earnings power, balance sheet profile, capital allocation, and the market’s willingness to pay for those fundamentals.
How to Read This Wynn Resorts Return Profile
Viewed in isolation, a 4.83% five-year total return is modest. It suggests that over this period, investors were compensated primarily through a combination of limited price appreciation and a relatively small but positive dividend contribution. For a company in the gaming and hospitality sector, where results can be cyclical and sensitive to travel demand, consumer spending, and regional operating conditions, that kind of return profile underscores the importance of entry price and operating recovery timing.
It also highlights a broader point: a five-year holding period does not guarantee strong compounding if the business experiences uneven earnings recovery or if valuation multiples do not expand. Total return ultimately reflects both the company’s operating progress and the price paid at the outset.
One more piece of investment wisdom to leave you with:
“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
