 |
 Video: What is a Stock Split?
|
|
|
| Caterpillar manufactures construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Co. has five segments: Construction Industries, which provides machinery for infrastructure, forestry and building construction applications; Resource Industries, which provides machinery for mining, quarry, waste, and material handling applications; Energy and Transportation, which provides reciprocating engines, turbines, diesel-electric locomotives and related parts; Financial Products Segment, which provides financing for Co.'s products; and All Other operating segments, which provides business strategy and product management. According to our Caterpillar stock split history records, Caterpillar has had 5 splits. |
|
|
Caterpillar (CAT) has 5 splits in our Caterpillar stock split history database. The first split for CAT took place on July 26, 1976. This was a 3 for 2
split, meaning for each 2
shares of CAT owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 1500 share position following the split. CAT's second split took place on September 06, 1994. This was a 2 for 1
split, meaning for each share of CAT owned pre-split, the shareholder now owned 2 shares. For example, a 1500 share position pre-split, became a 3000 share position following the split. CAT's third split took place on July 14, 1997. This was a 2 for 1
split, meaning for each share of CAT 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. CAT's 4th split took place on July 14, 2005. This was a 2 for 1 split, meaning for each share of CAT 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. CAT's 5th split took place on July 06, 1964. This was a 2 for 1 split, meaning for each share of CAT owned pre-split, the shareholder now owned 2 shares. For example, a 12000 share position pre-split, became a 24000 share position following the split.
When a company such as Caterpillar 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 Caterpillar stock split history from start to finish, an original position size of 1000 shares would have turned into 24000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Caterpillar shares, starting with a $10,000 purchase of CAT, presented on a split-history-adjusted basis factoring in the complete Caterpillar stock split history.
Growth of $10,000.00
With Dividends Reinvested
|
| Start date: |
04/24/2008 |
|
| End date: |
04/23/2018 |
|
| Start price/share: |
$81.82 |
|
| End price/share: |
$153.99 |
|
| Starting shares: |
122.22 |
|
| Ending shares: |
163.70 |
|
| Dividends reinvested/share: |
$23.52 |
|
| Total return: |
152.08% |
|
| Average Annual Total Return: |
9.68% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$25,199.06 |
|
| Years: |
10.00 |
|
| |
Growth of $10,000.00
Without Dividends Reinvested
|
| Start date: |
04/24/2008 |
|
| End date: |
04/23/2018 |
|
| Start price/share: |
$81.82 |
|
| End price/share: |
$153.99 |
|
| Dividends collected/share: |
$23.52 |
|
| Total return: |
116.95% |
|
| Average Annual Total Return: |
8.05% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$21,694.01 |
|
| Years: |
10.00 |
|
|
|
| Date |
Ratio |
| 07/26/1976 | 3 for 2
| | 09/06/1994 | 2 for 1
| | 07/14/1997 | 2 for 1
| | 07/14/2005 | 2 for 1 | | 07/06/1964 | 2 for 1 |
|
|
