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— Warren Buffett

A five-year holding period is a useful test of how a stock performs across more than one market environment. For BXP Inc (NYSE: BXP), that test has been difficult. A $10,000 investment made on 10/26/2021 and held through 10/23/2026, with dividends reinvested, would now be worth $6,782.08. That equates to a total return of -32.17% and an average annual return of -7.48%.

The result is notable because BXP is not a high-volatility growth stock. It is a large office-focused real estate investment trust, and for income-oriented investors the key question is not simply whether the company paid dividends, but whether those dividends were sufficient to offset share-price weakness. Over this period, they were not.

BXP 5-Year Return Details

BXP 5-Year Return Details
Start date:	10/26/2021	$10,000 10/26/2021   $6,782 10/23/2026
End date:	10/23/2026
Start price/share:	$118.69
End price/share:	$62.10
Starting shares:	84.25
Ending shares:	109.23
Dividends reinvested/share:	$18.20
Total return:	-32.17%
Average annual return:	-7.48%
Starting investment:	$10,000.00
Ending investment:	$6,782.08

[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

What Drove the Weak Total Return?

The central reason is straightforward: BXP’s share price decline was too large for dividend income to overcome. The stock fell from $118.69 to $62.10 over the measurement period, a drop of roughly 47.7% before accounting for dividends. Reinvestment helped increase the share count from 84.25 shares to 109.23 shares, but the lower market value of those shares still left the total position well below the original investment.

That dynamic matters in office REIT analysis. A meaningful dividend can cushion returns, but if the market substantially reprices the underlying real estate exposure, total return can remain negative even after years of cash distributions. In BXP’s case, the dividend stream reduced the damage but did not reverse it.

Dividend Reinvestment and Why It Matters

BXP paid $18.20 per share in dividends over the five-year period covered above. Assuming those dividends were reinvested on the ex-dividend date closing price, the investor’s share count rose materially. That is the compounding effect of a dividend reinvestment plan, or DRIP: cash distributions buy additional shares, and those added shares can then generate future dividends of their own.

In a stable or rising stock, reinvestment can significantly improve long-term returns. In a falling stock, reinvestment still increases share ownership, but the benefit depends on whether the stock eventually recovers. The BXP example shows both sides of that equation: more shares were accumulated, yet the market value of the position still declined because the underlying stock price fell sharply.

Current Yield and Yield on Cost

Based on the most recent annualized dividend rate of $2.80 per share, BXP has a current yield of approximately 4.51% using the $62.10 ending share price. That is the forward-looking income rate implied by the current dividend relative to the current stock price.

Yield on cost measures something different. It compares the current annualized dividend of $2.80 with the original purchase price of $118.69 per share. On that basis, the yield on cost is about 3.80%. This metric can be useful for tracking income growth against an original entry point, but it should not be confused with current yield, which reflects the return an investor would receive on new capital invested at today’s market price.

Key Takeaways

For quick reference:

• $10,000 invested in BXP on 10/26/2021 grew to 109.23 shares through dividend reinvestment.
• Those shares were worth $6,782.08 on 10/23/2026.
• Total return over the period was -32.17%.
• Average annual return was -7.48%.
• Dividends softened the decline, but they did not offset the share-price loss.

The broader lesson is that total return in dividend stocks depends on both income and valuation. A healthy payout can support results over time, but dividend income alone does not guarantee capital preservation.

More investment wisdom to ponder:
“Sentimentality about an investments leads to lack of discipline.” — Sam Zell