In Indian equity
markets everyone knows about the two wheeler manufacturer Hero MotoCorp.
However hardly anyone knows about the kind to wealth it has generated for its
shareholders. If someone had invested in 100 shares of Hero MotoCorp (then Hero
Honda) in 1996, he would have generated returns at a CAGR of 28.31 percent over
the 20 years period. Rather the investors would have earned more than 15 times
(yes you read it right, Times) of the invested amount in just dividend
receipts. The person till date would have received a dividend to the tune of Rs
478970 crore. And if we talk about the capital appreciation, the meagre amount
of Rs 29, 000 would now has appreciated to Rs 33, 11,000. This clearly shows
the power of compounding equity markets provide if someone has patience. Following
table clearly shows the kind of dividend receipts investors would have gathered
over the twenty years.
|
Year
|
No
of Shares
|
Remarks
|
Face
Value (Rs)
|
Dividend
Per Share
(Rs)
|
Total
Dividend (Rs)
|
|
1996
|
100
|
|
10
|
3.2
|
320
|
|
1997
|
100
|
|
10
|
3.5
|
350
|
|
1998
|
200
|
Bonus
1:1
|
10
|
4
|
800
|
|
1999
|
200
|
|
10
|
7.5
|
1500
|
|
2000
|
200
|
|
10
|
10
|
2000
|
|
2001
|
1000
|
Split
from
Rs 10 to Rs 2
|
2
|
8
|
8000
|
|
2002
|
1000
|
|
2
|
12
|
12000
|
|
2003
|
1000
|
|
2
|
18
|
18000
|
|
2004
|
1000
|
|
2
|
20
|
20000
|
|
2005
|
1000
|
|
2
|
20
|
20000
|
|
2006
|
1000
|
|
2
|
20
|
20000
|
|
2007
|
1000
|
|
2
|
17
|
17000
|
|
2008
|
1000
|
|
2
|
19
|
19000
|
|
2009
|
1000
|
|
2
|
20
|
20000
|
|
2010
|
1000
|
|
2
|
110
|
110000
|
|
2011
|
1000
|
|
2
|
105
|
105000
|
|
2012
|
1000
|
|
2
|
45
|
45000
|
|
2013
|
1000
|
|
2
|
60
|
60000
|
|
2014
|
1000
|
|
2
|
65
|
65000
|
|
2015
|
1000
|
|
2
|
60
|
60000
|
|
2016
|
1000
|
|
2
|
40
|
40000
|
|
|
|
|
|
Total
Accumulated Dividend
|
478970
|
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