Time Traveller Series: If You Bought BDO Stocks When Covid Crashed The Markets – CaseStudy[0]
The Philippine Stock Exchange (PSE) experienced a major crash in March 2020, as investors sold off shares in response to the COVID-19 pandemic.
I was just 2 weeks into my new job and did not have enough liquid cash to invest and take advantage of the market crash.
Let’s take a ride on an imaginary Time Machine, and see what could have been a major opportunity to capitalize on.
2020 BDO Chart
January of 2020, BDO’s price per share was hovering around P130.00 and continued to drop daily as the Covid situation got worse down to only P71.00 per share on a drop of –45%.
This kind of drop is unheared of for a Blue-Chip stock.
The Time To Buy
Let’s say that we had P100,000 to invest and put it all in BDO and jump back to the future to see how it went.
We’ll have 1408 shares. Let’s see how it goes after 3 years.
Wake Up! Were Back To The Present
The year is 2023, three years have passed. From P71, BDO’s current price is P145.
Our 1408 shares is now worth P204,160.
That is roughly 104% profit in just 3 years.
MP2 will get you about 30% profit taking account reinvesting the
dividends and a 5 year span.
And we’re not done yet.
What about Dividends?
I did not pay much attention to BDO.
I let out an audible ‘what the fuck!‘ when I found out that during that span of three years.
There have been 13, yes 13 dividend payouts!
The dividend rate was roughly at a decent 0.3 for the first 11 and the last two dividends where at a shocking 0.75.
Our 1408 shares would give us around :
Approximate Dividend rate = 0.3
Number of shares = 1408
Dividend received = 0.3 * 1408 Dividend received = P422.4
And you could have gotten 11 of these
Total = 4646.4
Approximate Dividend rate = 0.75
Number of shares = 1408
Dividend received = 0.75 * 1408 Dividend received = P1056
Two of these
Total = P2112
Total Dividends = P6758.4
or another 6.76% from your capital of P100,000
Stock Dividends?
What in the FOMO hell is this?
I missed out on this blue-chip stock!
You won this one BDO investors!
Total Missed Profit
A very good look back to what could have been!
Our capital of P100,000 could have given us a stock profit of P104,160
and dividend profit of P6758.4 for a total profit of P110,918.4.
Your total fund value would have been P210,918.4.
That’s it for our journey, let’s jump on the Time Machine again for the next one!
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