Dell's 2018 Market Comeback Has Delivered Big — Here's The Full Payout, Including Broadcom Stock, Cash

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Dell Technologies (NYSE: DELL) stock is surging this week after the company reported quarterly financial results. The company has gone public twice in its history, rejoining the public markets in 2018 after a 2013 buyout took the company private. Here's a look at how the stock has performed since its return to the public markets:

Dell went public on Dec. 18, 2018, with shares trading around $46. The public debut came via Michael Dell and private equity partner Silver Lake Partners buying out the shareholders of a tracking stock related to VMware, ticker DVMT.

The offering came five years after Dell was taken private by Michael Dell and Silver Lake in a deal valuing the company at $24.4 billion.

The company would later spin off VMware, which was later acquired by Broadcom Inc (NASDAQ: AVGO).

Fast forward to today, and Dell is worth $264 billion. The company is viewed as one of the winners in the artificial intelligence space.

Here's a look back at how much investors who took a chance on Dell's second public debut would have made:

Investing in Dell's 2018 Public Offering

Dell stock debuted at $46 on Dec. 28, 2018.

A $1,000 investment in Dell could have bought 21.74 shares at the time.

Dell would later spin off VMware, with investors getting 0.440626 shares of the company for each Dell share they owned.

This means an investor who owned 21.74 DELL shares would have gotten 9.58 VMW shares, while keeping their DELL shares.

VMware was later bought out by Broadcom at a rate of $142.50 per share. The deal was completed with 47.9% paid in cash and 52.1% paid with Broadcom shares at a .2520 AVGO per VMW share ratio.

For the 9.58 VMW shares, that breaks down to 4.59 of the shares being paid out at $142.50 in cash for $654.08. The remaining 4.99 shares were swapped for 1.26 AVGO shares.

With Dell stock currently trading at $405.14 and Broadcom stock currently trading at $440.52, below is the current value of the original $1,000 investment in Dell stock on Dec. 18, 2018.

  • Dell Stock (21.74 shares): $8,807.74
  • Broadcom Stock (1.26 shares): $555.06
  • Cash (from VMW buyout): $654.08
  • Total: $10,016.88
This represents a total return of 901.7% over the last seven and a half years.

For comparison, the SPDR S&P 500 ETF Trust (NYSE: SPY), which tracks the S&P 500, would be up 193.6% over the same period of time.