If You’d Invested $2,500 in BCE Stock in 2003, Here’s How Much You’d Have Today

BCE Inc (TSX:BCE) stock has risen considerably since 2003. Here’s how much you’d have today if you’d invested in it at that time.

| More on:
A worker drinks out of a mug in an office.

Source: Getty Images

BCE (TSX:BCE) stock has seen significant price appreciation over the last 20 years. From the start of 2003 to today, it has risen 88%. That’s behind the market, but BCE has a very high dividend yield — 6.31%. On a total-return basis, BCE may have done better than it looks. In this article, I will explore BCE’s dividend history to determine exactly how much an investor would have made by buying the stock in 2003.

Created with Highcharts 11.4.3Bce PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The process for finding returns on reinvested dividends

To determine the total return on a stock, you need to know not only the price return, but also the return from dividends. Large-cap stocks like BCE often pay dividends, so it’s important to factor them in.

Dividends can either be paid to you as cash, or reinvested. If you reinvest your dividends, and the stock price goes up, you maximize your returns. If, however, the stock price goes down over your holding period, you maximize your return by collecting cash dividends. BCE’s stock has risen over the last 20 years, so we need to know the return with dividends reinvested. This is a little more complicated than just tallying up cash dividend payments, as you need to factor in how much each dividend grows after being used to buy more stock.

The process for finding a dividend stock’s total return with dividends reinvested works like this:

  1. Find the price return.
  2. Calculate how many shares each dividend buys and at what price.
  3. Add the returns from the reinvested dividends to the price return.

These steps are pretty tedious to go through by hand. Fortunately, they can be done easily by software.

You would have $8,902 today

If you’d invested $2,500 into BCE stock on January 2023 and held it to today, you’d have $8,902, or a 256.1% return. Assuming dividends were reinvested, of course. This is pretty remarkable because the return had there been no dividends would only have been $4,700 or 88%. By reinvesting your BCE dividends, you would have nearly doubled your return!

This is not surprising when you consider BCE’s history. BCE stock has always had a pretty high yield. In 2003, the yield was 3.6%, which is not high compared to the current 6.31% but is still fairly high compared to most stocks. As the years went on the yield steadily climbed, as the dividend grew more than the stock did. As a result, investors were able to amplify their returns considerably by re-investing their BCE dividends.

Foolish takeaway

BCE stock is a classic case of the importance of dividends. If you go solely by price return, it looks like a dud of a stock that underperformed its benchmark. But if you include dividends in the picture, then you’ll see that it has performed rather well.

Is BCE a buy today?

If you like high dividends, perhaps. The company’s earnings have been declining in recent years, but it still has high enough profit margins to pay ample dividends. Taking a broad view of things, the signals this stock gives off are pretty mixed. Perhaps a small position in a well diversified portfolio would be ideal.

Should you invest $1,000 in Capital Power right now?

Before you buy stock in Capital Power, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Capital Power wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

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 Andrew Button 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.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Investing

Stethoscope with dollar shaped cord
Investing

1 Magnificent Healthcare Stock Down 46% to Buy and Hold Forever

This TSX healthcare technology stock is trading at a considerable discount but boasts substantial long-term growth potential. It can be…

Read more »

calculate and analyze stock
Investing

Where I’d Invest $6,000 in The TSX Today

I am bullish on these two TSX stocks due to their solid underlying businesses and healthy growth prospects.

Read more »

Silver coins fall into a piggy bank.
Stocks for Beginners

Where I’d Invest My Savings in the TSX Today

If you have some savings ready to invest, then these three investments are top choices among analysts.

Read more »

Dividend Stocks

This Canadian Monthly Dividend Stock Pays a Stunning 9% Yield

Pro REIT is a Canada-based real estate company that offers you a forward yield of 9% in 2025. Is this…

Read more »

clock time
Bank Stocks

1 Magnificent Financial Stock Down 23% to Buy and Hold Forever

This top TSX financial stock is trading well below its recent peak, but its long-term fundamentals remain rock solid.

Read more »

dividend growth for passive income
Bank Stocks

This Canadian Bank Pays 4.75% and Could Double Your Money by 2030

A Canadian bank is a top pick for its lucrative dividend and potential to double your money in five years.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How I’d Invest $7,000 in My TFSA for $660 in Tax-Free Annual Income

Canadians looking for ways to make the most of the new TFSA contribution room should consider investing in these two…

Read more »

oil and natural gas
Energy Stocks

1 Magnificent Canadian Energy Stock Down 23% to Buy and Hold for Decades

This oil and gas producer has increased its dividend annually for more than two decades.

Read more »