If You Invested $10,000 in BCE Stock in 2010, This Is How Much You Would Have Today

There are many ways to earn money from the same stock. Here are three ways to invest $10,000 in BCE stock and get different returns.

| More on:

Image source: Getty Images

In the investing world, there are multiple ways to earn money. You can invest in growth stocks at the dip and sell them at the peak, earning from capital appreciation. But that may not always work, as the stock price could also fall. If you have already burned your hands on timing the market, you could invest a small amount every month in three to five stocks and build on the share count. And if you are looking at dividend stocks, there are three ways to grow your money. Today, we will see three ways BCE (TSX:BCE) stock can earn money. 

$10,000 invested in BCE in 2010 is $32,434 today 

The first method is to buy the stock at the dip, lock in a higher dividend yield and enjoy the payouts that grow annually. Suppose you invested $10,000 in BCE on January 1, 2010, you could have gotten 342 shares. Given that BCE grew its dividend all throughout these years, your 342 shares would earn you $610 in 2010 and $1,365 at the end of 2024 (at a $3.99 annual dividend per share). If you add up all 15 years of dividend income, your $10,000 would have paid you $14,914 in dividends, and the value of your 342 shares would have increased to $17,520 (342 x $51.23). 

Adding up the dividend and capital appreciation, your $10,000 is now $32,434. 

$10,000 invested in BCE in 2010 is $39,097 today 

The second method is to buy the 342 shares in 2010 with a $10,000 investment and opt for the dividend reinvestment program (DRIP). The company issues DRIP shares every quarter at a discounted price and saves you on brokerage fees. DRIP shares can be in decimal points. 

For ease of calculation, I took the annual dividend amount and reinvested it on January 1st of every year. This, the below calculation might differ from the actual return, which will most likely be higher than the calculated amount. 

YearBCE Share PriceBCE Dividend/ShareNew DRIP SharesTotal BCE SharesDividend Income
2010$29.22$1.79 342$610.47
$10,000 invested in BCE in 2010 is $39,097 today 

A $610 dividend would buy you 17.2 DRIP shares, which will also pay dividends. So you get $2.05 dividend per share on 359.16 shares. Your money is growing from three segments: dividend per share is rising, the number of shares is increasing, and total dividend income is growing. This compounding effect could earn you $2,826 in dividend income on 708.4 BCE shares, with a per-share dividend payment of $3.99 by the end of 2024. And 708 shares would be worth $36,270, bringing the dividend and capital total to $39,097. 

Other methods of investing 

The third method of investing in BCE is $1,000 every year on January 1 or $100 every month since 2010. Your invested amount will grow as the stock price surges. It will also compound in the DRIP while enjoying BCE’s 15-year dividend growth history. Based on a rough calculation of a $1,000 investment every year in BCE DRIP, the dividend amount would grow from $61 in 2010 to above $1,900 in 2024. 

The idea is to show you how staying invested builds up wealth in the long term. Compounding is a slow process but an effective one. And Canada has some of the best dividend aristocrats that can help you unleash its power. 

Investing take away

BCE is a good stock to consider dividend compounding since it has 50-plus years of dividend-paying history. The company enjoys steady cash flows from subscription money. It is undergoing restructuring as it prepares for the next stage of 5G. Hence, you may see a decline in the 2024 profit and dividend growth rate. However, this restructuring will help BCE streamline operations and focus on growing its businesses. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

value for money
Dividend Stocks

Canadian Tire Is Paying $7 per Share in Dividends. Time to Buy the Stock?

With Canadian Tire trading ultra-cheap and offering a safe dividend yield of more than 5.5%, is it one of the…

Read more »

Payday ringed on a calendar
Dividend Stocks

Secure Your Future: Top 2 Monthly Dividend Stocks to Buy in 2024

Here are two top Canadian monthly dividend stocks you can buy today to minimize risks to your portfolio.

Read more »

woman data analyze
Dividend Stocks

Passive Income: How Much to Invest to Get $6,000 Each Year

Have you ever wondered how much to invest to get $6,000 in passive income? It's easier than you think, and…

Read more »

Dividend Stocks

A Dividend Giant I’d Buy Over Suncor Right Now

Suncor stock is a TSX energy giant that trades at a compelling valuation while paying shareholders a tasty dividend yield.…

Read more »

oil and natural gas
Dividend Stocks

3 No-Brainer Dividend Stocks to Buy Right Now for Less Than $200

These dividend stocks could continue to increase dividends and enhance shareholders’ returns.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Here’s the Average CPP Benefit at Age 65 in 2024

Dividend stocks like Fortis Inc (TSX:FTS) can supplement the income you get from CPP.

Read more »

Airport and plane
Dividend Stocks

Is Air Canada a Buy, Hold, or Sell?

Air Canada (TSX:AC) stock is very cheap. Does that make it a buy?

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Invest $100 Each Month to Create $260.79 in Passive Income in 2024

Investors who only have a bit to put aside should certainly consider this ETF. It offers you the passive income…

Read more »