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Video: What is a Stock Split?
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Rio Tinto is engaged in finding, mining and processing mineral resources. Co.'s major products are iron ore, aluminium, copper, industrial minerals (borates, titanium dioxide and salt) and diamonds. Co.'s reportable segments include: Iron Ore, which includes Iron ore mining and salt and gypsum production in Western Australia; Aluminium, which includes Bauxite mining, alumina refining, aluminium smelting; Copper, which includes mining and refining of copper, gold, silver, molybdenum and other by-products; Minerals, which includes businesses with products such as borates, titanium dioxide feedstock also includes diamond mining, sorting and marketing. According to our Rio Tinto stock split history records, Rio Tinto has had 3 splits. | |
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Rio Tinto (RIO) has 3 splits in our Rio Tinto stock split history database. The first split for RIO took place on September 07, 2004. This was a 3 for 1 split, meaning for each share of RIO owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 3000 share position following the split. RIO's second split took place on June 07, 2006. This was a 2 for 1 split, meaning for each share of RIO owned pre-split, the shareholder now owned 2 shares. For example, a 3000 share position pre-split, became a 6000 share position following the split. RIO's third split took place on September 13, 2007. This was a 2 for 1 split, meaning for each share of RIO owned pre-split, the shareholder now owned 2 shares. For example, a 6000 share position pre-split, became a 12000 share position following the split.
When a company such as Rio Tinto splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business.
Looking at the Rio Tinto stock split history from start to finish, an original position size of 1000 shares would have turned into 12000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Rio Tinto shares, starting with a $10,000 purchase of RIO, presented on a split-history-adjusted basis factoring in the complete Rio Tinto stock split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
03/31/2014 |
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End date: |
03/27/2024 |
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Start price/share: |
$55.83 |
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End price/share: |
$63.46 |
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Starting shares: |
179.12 |
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Ending shares: |
377.23 |
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Dividends reinvested/share: |
$44.07 |
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Total return: |
139.39% |
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Average Annual Total Return: |
9.12% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$23,929.84 |
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Years: |
10.00 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
03/31/2014 |
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End date: |
03/27/2024 |
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Start price/share: |
$55.83 |
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End price/share: |
$63.46 |
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Dividends collected/share: |
$44.07 |
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Total return: |
92.61% |
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Average Annual Total Return: |
6.78% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$19,267.31 |
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Years: |
10.00 |
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Date |
Ratio |
09/07/2004 | 3 for 1 | 06/07/2006 | 2 for 1 | 09/13/2007 | 2 for 1 |
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