RBD closed today at $1.55. So my own total capital gain is now 52%. Over the twelve years I have held that represents a compounding rate of capital growth of 3.5%. Add that to my dividend yield of around 10% and my total anual return has increased to 13.5% (after tax) or something approaching 20%pa before tax. Not spectacular enough for some, but enough to see off the NZX50 now by a useful margin now. And unlike the index, because the dividends have been so high and steady, shareholders have been able to make their own decision as to whether they reinvest their dividends or spend them.
For me this has turned into a model investment, but only because I was prepared to buy and keep buying while the share price was low. The 'buy at the float' and hold investors still won't be popping any wine corks, although even they will have earned around 3.4% per annum before tax. That is a lot better than investing in (any?) finance company.
SNOOPY