“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 often used to test whether a stock has delivered durable value through a full market cycle. For shareholders of Fidelity National Information Services Inc (NYSE: FIS), that test has been difficult. A $10,000 investment made in late September 2021, with dividends reinvested, would be worth approximately $3,221.84 as of 09/24/2026.
That result translates to a total return of -67.78% and an annualized return of -20.29%. The decline is notable because it occurred even with dividend reinvestment, which typically helps cushion weaker share-price performance over time. In this case, the drop in the stock price was large enough to overwhelm the contribution from dividends.
FIS 5-Year Return Details
| Start date: | 09/27/2021 |
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| End date: | 09/24/2026 | ||||
| Start price/share: | $124.32 | ||||
| End price/share: | $34.99 | ||||
| Starting shares: | 80.44 | ||||
| Ending shares: | 92.08 | ||||
| Dividends reinvested/share: | $8.71 | ||||
| Total return: | -67.78% | ||||
| Average annual return: | -20.29% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $3,221.84 | ||||
The figures above indicate that a five-year investment in FIS produced a materially negative outcome despite reinvested distributions. Put differently, roughly two-thirds of the original capital was lost over the period. These numbers were computed with the Dividend Channel DRIP Returns Calculator.
What Drove the Weak Total Return
The main driver was straightforward: the stock price fell from $124.32 to $34.99 per share. Dividend reinvestment increased the share count from 80.44 to 92.08, but that added exposure could not offset the scale of the price decline.
This is an important distinction in total-return analysis. Dividends matter, but they do not automatically protect capital when a stock undergoes a major re-rating. When the market sharply lowers its valuation of a company, income can soften the blow, yet it may not come close to closing the gap.
- Initial investment: $10,000
- Ending value: $3,221.84
- Total return: -67.78%
- Annualized return: -20.29%
- Dividend reinvestment increased shares owned, but not enough to overcome the price loss
How Much Income Did FIS Generate?
Over the five-year period examined here, Fidelity National Information Services paid $8.71 per share in cumulative dividends, assuming those distributions were reinvested on the ex-dividend date at the closing price. That is why the ending share count is higher than the starting share count.
Using the most recent annualized dividend rate of $1.76 per share, FIS has a current yield of approximately 5.03% based on the ending share price of $34.99. On a yield-on-cost basis, that same $1.76 annualized dividend represents roughly 4.05% of the original $124.32 purchase price.
These two yield measures answer different questions:
- Current yield shows the income rate implied by the current share price.
- Yield on cost shows the current annual dividend relative to the original entry price.
Why Total Return Matters More Than Dividend Yield Alone
FIS illustrates why dividend yield should be evaluated alongside business performance, valuation, and capital returns. A stock can offer meaningful income and still produce a poor overall result if earnings expectations weaken, margins compress, leverage becomes a concern, or the market assigns a lower valuation multiple.
For long-horizon investors, total return remains the more complete measure because it combines three elements: price change, cash distributions, and the compounding effect of reinvestment. In this case, the income stream was real, but it was far smaller than the capital decline.
Bottom Line
A five-year investment in Fidelity National Information Services beginning in September 2021 would have resulted in a substantial loss. Even after reinvesting dividends, $10,000 would have declined to $3,221.84 by 09/24/2026. The case underscores a basic point in equity analysis: a dividend can support returns, but it does not offset a severe and sustained drop in share price.
“Successful investing is anticipating the anticipations of others.” — John Maynard Keynes
