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About ERIC Dividend Returns

Telefonaktiebolaget LM Ericsson (publ) (ERIC) is a dividend-paying stock. When dividends are reinvested through a DRIP (Dividend Reinvestment Plan), they purchase additional shares, which then generate their own dividends—creating a compounding effect that can significantly boost long-term returns.

How We Calculate Total Return

Our total return calculator simulates dividend reinvestment (DRIP) by assuming each dividend payment is used to purchase additional shares at the closing price on the ex-dividend date. This methodology provides an accurate representation of how a dividend reinvestment plan would perform.

Frequently Asked Questions

Q1What is the total return of ERIC over the past year?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) delivered a total return of 40.37% over the past year when dividends are reinvested. The price-only return was 36.61%, meaning dividends contributed an additional 3.76 percentage points to total returns.

Q2How much would $10,000 invested in ERIC be worth today?

A $10,000 investment in Telefonaktiebolaget LM Ericsson (publ) one year ago would be worth $14,037 today with dividends reinvested (DRIP). Without reinvesting dividends, the same investment would be worth $13,661. Dividend reinvestment added $376 to the portfolio value.

Q3Does ERIC pay dividends?

Yes, Telefonaktiebolaget LM Ericsson (publ) (ERIC) pays dividends. In the last year, ERIC paid approximately $2.68 per share in dividends (2.46% yield). Reinvesting these dividends through a DRIP can significantly boost long-term returns — over 20+ years, dividend compounding can account for 30–50% of total returns for dividend-paying stocks.

Q4Did ERIC beat the S&P 500?

Yes, Telefonaktiebolaget LM Ericsson (publ) (ERIC) outperformed the S&P 500 by 15.38 percentage points over the past year. ERIC delivered a total return of 40.37%, compared to the S&P 500's 24.99%. This 15.38pp alpha means investors in ERIC earned more than a passive S&P 500 index fund.

Q5What is ERIC's worst drawdown?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) experienced a maximum drawdown of -17.18% over the past year, declining from its peak on 2026-06-02 to its trough on 2026-06-18. The stock has not yet fully recovered to its prior peak. Maximum drawdown measures the worst peak-to-trough decline and is an important risk metric for investors.

Q6What is ERIC's long-term total return over 10, 20, or 30 years?

Here are Telefonaktiebolaget LM Ericsson (publ) (ERIC)'s long-term returns with dividends reinvested. Over 10 years, the total return is 70.1% (5.5% CAGR) — $10,000 would have grown to $17,012. Over 20 years: 11.3% total return (0.5% CAGR) — $10,000 → $11,128. Over 30 years: 32.4% total return (0.9% CAGR) — $10,000 → $13,241. Long-term investors benefit from compounding: dividends buy additional shares, which generate their own dividends, creating an exponential growth effect.

Q7What was ERIC's best and worst year?

Telefonaktiebolaget LM Ericsson (publ)'s best calendar year was 1999 with a total return of 161.4%. Its worst year was 2002 with a total return of -87.7%. This range shows the volatility investors should expect — the difference between the best and worst year is 249.2 percentage points.

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