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— Warren Buffett

Entergy Corp (NYSE: ETR) illustrates how a long holding period, combined with dividend reinvestment, can materially change investment outcomes. A $10,000 investment in Entergy stock made on 10/27/2021 would have grown to $24,594.25 by 10/26/2026, assuming all dividends were reinvested. That equates to a total return of 145.90% and an annualized return of 19.72%.

For a regulated utility, that is an unusually strong five-year result. It reflects both capital appreciation in the share price and the compounding effect of reinvested cash distributions. Entergy has long been followed as an income-oriented stock, but this period shows that total return, not just headline yield, is the more useful framework for evaluating performance.

Entergy 5-Year Return at a Glance

ETR 5-Year Return Details
Start date:	10/27/2021	$10,000 10/27/2021   $24,594 10/26/2026
End date:	10/26/2026
Start price/share:	$51.56
End price/share:	$107.50
Starting shares:	193.95
Ending shares:	228.75
Dividends reinvested/share:	$10.81
Total return:	145.90%
Average annual return:	19.72%
Starting investment:	$10,000.00
Ending investment:	$24,594.25

In simple terms, the original $10,000 investment more than doubled over the period. The share price rose from $51.56 to $107.50, while dividend reinvestment increased the position from 193.95 shares to 228.75 shares. Those additional shares helped lift the ending value beyond what price appreciation alone would have produced.

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

How Dividend Reinvestment Affected Total Return

Dividend reinvestment is central to this Entergy total return analysis. Over the five-year period, Entergy paid $10.81 per share in dividends, and the calculation assumes those distributions were reinvested using the closing price on each dividend’s ex-dividend date. Reinvestment matters because it increases the share count over time, allowing future dividends to be earned on a larger base.

That distinction is especially important for utilities. Companies in the sector are often evaluated primarily for income, but long-term outcomes are driven by a combination of three variables:

• Share price change
• Cash dividends paid
• The compounding effect of reinvesting those dividends

In Entergy’s case, all three contributed to the final result. The increase in ending shares from 193.95 to 228.75 shows the mechanical impact of reinvestment clearly.

Current Yield and Yield on Cost

Based on the most recent annualized dividend rate of $2.56 per share, ETR has a current yield of approximately 2.38% using the ending share price of $107.50. Current yield measures the income an investor would receive relative to the stock’s present market value.

Yield on cost answers a different question: how much income does the current dividend generate relative to the original purchase price? Using the same $2.56 annualized dividend against the initial $51.56 share price, Entergy’s yield on cost is 4.96%.

That metric can be useful in evaluating seasoned holdings. As dividends rise or as a stock is acquired at a favorable entry point, yield on cost can become materially higher than the stock’s current market yield. It does not indicate what a new buyer would earn today, but it can help explain why long-term holders of dividend stocks may be reluctant to sell strong performers.

What This Says About Entergy Stock Performance

Entergy operates in a segment of the market typically associated with steadier cash flows, regulated returns, and recurring dividends rather than outsized capital gains. That makes this five-year performance notable. A result of this magnitude suggests that valuation expansion and business execution both likely played a role alongside the company’s dividend stream.

For historical analysis, the main takeaway is straightforward: focusing only on price change would understate the investment outcome, while focusing only on dividend yield would miss the much larger contribution from total return. Entergy stock delivered both income and substantial appreciation over this period.

Key Figures

• Initial investment: $10,000
• Holding period: 10/27/2021 to 10/26/2026
• Ending value: $24,594.25
• Total return: 145.90%
• Annualized return: 19.72%
• Dividends reinvested per share: $10.81
• Current annualized dividend rate: $2.56
• Current yield: 2.38%
• Yield on cost: 4.96%

“Your investor’s edge is not something you get from Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.” — Peter Lynch