More reinvested shares

by Chris Holliday
(Perth)

2002 started reinvesting dividends with Diageo 900 shares & BAT 1300 shares, do you think that was an equally good opportunity as the Unilever one??

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Aug 11, 2019
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Diageo and BAT case studies
by: Mike

Hello Chris,

I've had a quick look and it turns out that both Diageo and BAT (British American Tobacco) turned out to be better investments from 2002. The numbers tell the story:

Unilever:

Price on first trading day of 2002: £ 5.58
Price 19th Aug 2019: £48.93
Stock Price Return: 290%
Return with dividends reinvested: 620%
Annualized return adjusted for : 8.03%
consolidation)
Annualized return with dividends : 11.86%
reinvested (excl dealing costs)

Diageo:

Price on first trading day of 2002: £ 7.85
Price 19th Aug 2019: £33.75
Stock Price Return: 330%
Return with dividends reinvested: 653%
Annualized return adjusted for : 8.63%
consolidation)
Annualized return with dividends : 12.14%
reinvested (excl dealing costs)

BAT:

Price on first trading day of 2002: £ 5.82
Price 19th Aug 2019: £30.66
Stock Price Return: 426%
Return with dividends reinvested: 1,057%
Annualized return adjusted for : 14.90%
consolidation)
Annualized return with dividends : 11.86%
reinvested (excl dealing costs)

Conclusion:

All three have provided very good investment returns in the last seventeen years. Tobacco maybe bad for your health but it has been very good for your finances. This has been consistent with returns in the US where the best performing stock between 1956-2012 in the S&P 500 has been Philip Morris (according to Stocks for the Long run).

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