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— Warren Buffett

A five-year holding period can be a useful lens for evaluating an industrial stock such as Rockwell Automation, Inc. (NYSE: ROK). Rockwell Automation operates in industrial automation, controls, and digital transformation, areas that tend to be shaped by long investment cycles rather than short-term market sentiment. Looking back to a purchase made in late 2021 shows how share-price appreciation and dividend reinvestment combined to drive the total return.

Using a starting investment of $10,000 on 10/29/2021 and assuming all dividends were reinvested, the position would have grown to $15,105.99 by 10/28/2026. That represents a total return of 51.03%, or an average annual return of 8.60%.

ROK 5-Year Return Details

ROK 5-Year Return Details
Start date:	10/29/2021	$10,000 10/29/2021   $15,105 10/28/2026
End date:	10/28/2026
Start price/share:	$319.40
End price/share:	$443.81
Starting shares:	31.31
Ending shares:	34.03
Dividends reinvested/share:	$24.96
Total return:	51.03%
Average annual return:	8.60%
Starting investment:	$10,000.00
Ending investment:	$15,105.99

On this set of assumptions, Rockwell Automation delivered a solid five-year outcome. The investment gain came from two sources: a higher share price and the incremental shares accumulated through dividend reinvestment. The share count increased from 31.31 to 34.03, illustrating how even a modest dividend yield can contribute meaningfully over time when distributions are reinvested.

These figures were computed with the Dividend Channel DRIP Returns Calculator.

What Drove the Return?

For a company like Rockwell Automation, long-term returns are often tied to a mix of cyclical industrial demand and structural growth in factory automation. The business is exposed to capital spending by manufacturers, which can fluctuate with the economic cycle. At the same time, demand for automation, controls software, connected devices, and productivity upgrades can support growth over longer periods.

That combination helps explain why a five-year view can be more informative than focusing on a single quarter or even a single year. Industrial technology companies may see temporary swings in orders, margins, and valuation multiples, but the underlying investment case is usually tied to adoption of automation and digitalization across manufacturing environments.

How Dividend Reinvestment Changed the Outcome

Over the period analyzed, Rockwell Automation paid $24.96 per share in dividends, with each payment assumed to be reinvested at the closing price on the ex-dividend date. That reinvestment lifted the ending share count and increased the final portfolio value.

In practical terms:

• Price appreciation increased the value of the original shares.
• Dividend payments purchased additional shares over time.
• Those added shares then participated in subsequent price gains and future dividends.

This is a straightforward example of why total return is generally a better measure than price return alone when evaluating dividend-paying stocks.

Current Yield and Yield on Cost

Based on the most recent annualized dividend rate of $5.52 per share, ROK has a current yield of approximately 1.24% using the ending share price of $443.81.

It is also possible to look at yield on cost, which compares the current annualized dividend to the original purchase price. Using the 2021 entry price of $319.40 per share, yield on cost works out to roughly 1.73%.

That distinction matters:

• Current yield measures income relative to the stock’s current market price.
• Yield on cost measures current income relative to the original purchase price.

For long-term holders, yield on cost can rise over time if the dividend grows, even when the stock’s quoted yield remains modest.

Bottom Line

A $10,000 investment in Rockwell Automation in late 2021 would have grown to $15,105.99 over five years with dividends reinvested, producing a 51.03% total return and an 8.60% annualized return. The result underscores a familiar point in equity investing: in quality industrial businesses, time horizon and reinvestment can materially influence the final outcome.

One final investment quote is worth keeping in mind:
“Waiting helps you as an investor and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.” — Charlie Munger