Tracking £1,000 in BT Shares: What Really Happened?
If you’d put £1,000 into BT Group shares back in 2020, you probably expected those earnings to grow with the rollout of faster broadband and the company’s big name in UK telecoms. But fast-forward to July 2025, and the story doesn’t match the original script for easy profits. Let’s break down why.
BT’s share price sits at 174.7p today. Five years ago, it hovered around 200p after a sharp slide from its decade-high price of 446.7p. That recent dip means that original £1,000 investment would now be worth roughly £870—just from the share price alone. That loss stings, but dividends sweetened the picture. Over five years, shareholders received about 99p per share in dividends. With nearly 500 shares from a £1,000 buy-in, that’s nearly £500 pocketed, trimming your losses if you reinvested or kept collecting.
So, what went wrong? BT’s international business struggled, and fierce competition squeezed its margins in the UK. As other broadband providers raced to catch up, BT invested heavily in full-fibre infrastructure—reaching 18 million homes and businesses by 2025. But those gigantic upgrades didn’t come cheap. Meanwhile, revenue from overseas markets faded, and costs kept piling up.
Strategic Pivots, Dividends, and What’s Next
It wasn’t all doom, though. In the past year alone, BT shares saw a sharp 20% rally as investors warmed up to the company’s progress. The company stepped on the gas with a bold cost-saving plan—targeting £3 billion in savings by 2029. Its Openreach division, which handles those new fibre lines, delivered better-than-expected profit margins. That grabbed attention from European institutional investors looking for reliable dividends, which currently sit at a 4.69% yield. Morningstar analysts even say BT looks slightly undervalued at current prices, with a fair value estimate of 190p a share.
Still, the outlook demands patience. The forward P/E ratio of 8.8 says the market is cautious about long-term growth—understandable given past disappointments. For anyone who bought in five years ago, the BT shares journey wasn’t a straight path to riches. Dividends helped dull the pain of a falling share price, but most investors didn’t come out ahead once you add it all up.
- Share price down, but recent bounce offers hope
- Dividends took the sting out of losses
- Full-fibre rollout and cost cuts may fuel recovery
- Still rated just below fair value by analysts
People weighing up whether to invest now will have to decide if BT’s transformation plans can deliver on the promise—because the past five years have been a bumpy ride.