If You Invested $10,000 in Westpac in January 2022, See Your Returns Now!

In the ever-shifting landscape of the Australian stock market, few names carry the weight and reputation that Westpac Banking Corp (ASX: WBC) does. For investors seeking a blend of capital gains and reliable dividends, Westpac has long been a stalwart choice within the S&P/ASX 200 Index (ASX: XJO). In this exploration, we dive into the journey of a $10,000 investment in Westpac shares made two years ago and uncover the potential returns it holds today.


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The Westpac Advantage

Capital Gains and Dividends

Westpac shares have historically been prized not only for their potential capital gains but also for the consistent fully franked dividend payments they offer. Despite the market's ebbs and flows, Westpac's reputation as a dividend-yielding stock remains intact.

Market Performance

In the current year, Westpac shares have faced some challenges, down 0.3% year to date, trading at $22.93 per share. This performance, while not immune to broader market pressures, still outshines the 3.5% loss incurred by the ASX 200 in the same period.

The Journey: Two Years Ago to Today

Historical Snapshot

To truly gauge the value Westpac shares have delivered, let's rewind the clock to 28 January 2022, when Westpac shares closed at $20.63 per share. A $10,000 investment at that time could have secured 484 shares, leaving room for a fast-food meal with the change.

Present-Day Worth

Fast forward to the present, and those same shares are valued at $22.93. If one were to sell the 484 shares today, the return on the initial $10,000 investment would be $11,098 – a commendable gain of $1,098.

The Dividend Bonus

However, the Westpac story isn't just about capital gains. Over the past two years, shareholders would have received four fully franked dividends, totaling $2.67 per share. The most recent dividend, a festive 72 cents per share, landed in investors' accounts just before Christmas on 19 December.

Total Return on Investment

Factoring in these dividends, the cumulative value of the Westpac shares would now stand at $25.60 per share, accompanied by the potential tax benefits from the franking credits. This elevates the total value of the 484 shares to an impressive $12,394.

The Bottom Line: A Resilient 23.9% Gain

In conclusion, the journey of a $10,000 investment in Westpac shares over the past two years has proven to be a rewarding one. The 23.9% gain or a profit of $2,394 showcases the resilience and wealth-building potential that Westpac offers to its long-term shareholders.


For investors seeking stability, consistent dividends, and the prospect of capital appreciation, Westpac remains a formidable contender within the Australian stock market
Location: Australia

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