How privatised firms rewarded investors with dividends It found that investors who have backed other privatisation shares over the years, such as BT, have made significant returns from reinvesting their dividends. By carrying out the same strategy with Royal Mail investors may be able to make similar big gains, said the group. For example investors who pumped £1,000 into BT shares when it listed on the stock market in 1984 would be sitting on a face value of £3,800 today. But shareholders who reinvested their dividends would have made a much bigger gain, as shares would now be worth £15,495. Other success stories include BG Group. A £1,000 investment into the stock when it floated in December 1986 would now be worth £19,220. With dividends reinvested the investment would now be worth almost £50,000. Michael Clark, fund manager of the Fidelity MoneyBuilder Dividend Fund, said: "Reinvesting the dividend from these types of shares has proved to be a great decision over the long term. Going forward, investing in large companies that hand back regular cash to investors can be an extremely effective investment strategy. Table - How much would a £1,000 investment be worth today? Listing date Return Total return with reinvested dividends BG Group United Utilities Severn Trent SSE (formerly Scottish & Southern Energy) National Grid Source: Fidelity and Datastream