In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO. The calculation of returns includes dividends and tax credits.
Westpac Banking Group Ltd [WBC.NZX] has been a stellar investment for shareholders since its 1970 listing* on the ASX at $AU 2 per share and 1992 listing on the NZX at an adjusted $NZ 6.50. With $AU15.62c in net dividends (see NZX chart above and ASX chart here ) and numerous share splits, bonus issues, rights issues,share buybacks capital raisings and ; a 1:5 bonus issue in 1970 ,1:4 bonus issue in 1973 and 1977, a 1:4 rights issue in 1985 and 1988, a 5% share buyback and numerous capital raisings ** in 1996 gives WBC an 1970% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) and over the nearly 40 year listing of WBC an annual net return of 49.25 %***!.
* We will look at the full history for this Australian stock that listed in 1970 on the ASX and December 1992 for a New Zealand listing on the NZX.
**Estimated dilution of 90% for shareholders.
*** For holders of New Zealand listed shares the annual return has been just over 28 % since available data based on a 1992 share price of NZ$6.50, AU$9.48 in net dividends, 30% in tax credits and a 5% share buyback in 1996. This compares to a 7.22% return from the average of all NZX indexes.
! This compares to a 51.21% return for ANZ Bank over 41 years.
Long Term View Series
Auckland International Airport
Air New Zealand
AMP Ltd
ANZ Banking Group Ltd
Briscoe Group Ltd
Cavalier Corporation Ltd
Comvita Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hallenstein Glasson Holdings Ltd
Hellaby Holdings Ltd
Infratil Ltd
Kirkcaldie & Stains Ltd
Kiwi Income Property Trust Ltd
Mainfreight Ltd
Michael Hill International Ltd
Metlifecare Ltd
Methven Ltd
Mowbray Collectables Ltd
NZ Oil & Gas Ltd
New Zealand Refining Ltd
New Zealand Stock Exchange Ltd
Nuplex Industries Ltd
PGG Wrightson Ltd
Port Of Tauranga Ltd
Postie Plus Group Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Sealegs Corp Ltd
Scott Technology Ltd
Skellerup Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Smiths City Group Ltd
Steel & Tube Ltd
Telecom NZ Ltd
Telstra Corp Ltd
Tourism Holdings Ltd
Trustpower Ltd
Turners Auctions Ltd
Turners & Growers Ltd
The Warehouse Group Ltd
Vector Ltd
Wakefield Health Ltd
Westpac Banking Group Ltd @ Share Investor
Discuss WBC @ Share Investor Forum
Download WBC Company Reports
Recommended Amazon Reading
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours
c Share Investor 2010
