Bought $1,000 of Magellan shares in 2013? Here's how much passive income you've received

Have shares in the embattled financial giant really returned 178% in 10 years?

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Key points

  • The Magellan share price has had a shocking few years, crashing 88% from its 2020 peak to close yesterday's session at $8.56
  • Fortunately, the funds management business has continued paying dividends throughout that time
  • Indeed, it's provided a total of around $12.29 per share of dividends since 2013

The last 10 years have been a rollercoaster for Magellan Financial Group Ltd (ASX: MFG) shares.

They rocketed more than 800% over seven years to peak in February 2020, trading at over $70 apiece. Since then, however, the stock has crumbled, falling 88% to $8.56 at Tuesday's close.

If one were to have invested $1,000 in Magellan shares in early March 2013, they likely would have walked away with 133 securities, paying $7.50 apiece.

 Today, that parcel would be worth $1,138.48. That marks a 14% gain over the last 10 years.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen around 43% in that time.

But what about the regular dividends offered by the embattled financial giant?

All dividends offered by Magellan shares over the last 10 years

Here are all the dividends offered by Magellan since March 2013:

Magellan dividends' pay dateTypeDividend amount
September 2022Final68.9 cents
March 2022Interim$1.101
September 2021Final$1.141
February 2021Interim97.1 cents
August 2020Final$1.22
February 2020Interim92.9 cents
August 2019Final$1.114
February 2019Interim73.8 cents
August 2018Final90 cents
February 2018Interim44.5 cents
August 2017Final47.2 cents
March 2017Interim38.4 cents
August 2016Final38 cents
March 2016Interim51.3 cents
August 2015Final37.8 cents
March 2015Interim37.1 cents
September 2014Final21.8 cents
March 2014Interim16.5 cents
October 2013Final16.5 cents
Total: $12.294

As the above chart shows, each Magellan share has provided around $12.29 of dividends over the last 10 years.

That means our figurative investment has likely paid out around $1,635.10 of passive income over its life – more than the initial investment!

At that rate, the total return on investment (ROI) boasted by Magellan shares over the last 10 years is around 178%. Though, past performance isn't an indication of future performance.

And that's before we consider any potential tax benefits offered from the company's regularly franked payouts.

The ASX 200 stock is currently trading with a 20.9% trailing dividend yield. Though, that's largely due to the 46% tumble experienced by the Magellan share price over the last 12 months.

Additionally, the company declared its next dividend last month. It will be worth 46.9 cents per share and is set to be paid next Wednesday.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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