 |
 Video: What is a Stock Split?
|
|
|
| Costco Wholesale operates membership warehouses based on the concept of providing its members low prices on a selection of nationally branded and private-label products in a range of merchandise categories. Co.'s provides merchandise in the following categories: foods, including dry foods, packaged foods, and groceries; sundries, including snack foods, candy, alcoholic and nonalcoholic beverages, and cleaning supplies; hardlines, including appliances, electronics, health and beauty aids, hardware, and garden and patio; fresh foods, including meat, produce, deli, and bakery; softlines, including apparel and small appliances; as well as ancillary, including gas stations and pharmacy. According to our Costco Wholesale stock split history records, Costco Wholesale has had 2 splits. | |
|
Costco Wholesale (COST) has 2 splits in our Costco Wholesale stock split history database. The first split for COST took place on October 22, 1993. This was a 2 for 1
split, meaning for each share of COST owned pre-split, the shareholder now owned 2 shares. For example, a 1000 share position pre-split, became a 2000 share position following the split. COST's second split took place on January 14, 2000. This was a 2 for 1
split, meaning for each share of COST owned pre-split, the shareholder now owned 2 shares. For example, a 2000 share position pre-split, became a 4000 share position following the split.
When a company such as Costco Wholesale 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 Costco Wholesale stock split history from start to finish, an original position size of 1000 shares would have turned into 4000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Costco Wholesale shares, starting with a $10,000 purchase of COST, presented on a split-history-adjusted basis factoring in the complete Costco Wholesale stock split history.
Growth of $10,000.00
With Dividends Reinvested
|
| Start date: |
01/16/2009 |
|
| End date: |
01/15/2019 |
|
| Start price/share: |
$48.80 |
|
| End price/share: |
$211.03 |
|
| Starting shares: |
204.92 |
|
| Ending shares: |
265.32 |
|
| Dividends reinvested/share: |
$32.53 |
|
| Total return: |
459.90% |
|
| Average Annual Total Return: |
18.79% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$55,976.24 |
|
| Years: |
10.00 |
|
| |
Growth of $10,000.00
Without Dividends Reinvested
|
| Start date: |
01/16/2009 |
|
| End date: |
01/15/2019 |
|
| Start price/share: |
$48.80 |
|
| End price/share: |
$211.03 |
|
| Dividends collected/share: |
$32.53 |
|
| Total return: |
399.10% |
|
| Average Annual Total Return: |
17.44% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$49,928.87 |
|
| Years: |
10.00 |
|
|
|
| Date |
Ratio |
| 10/22/1993 | 2 for 1
| | 01/14/2000 | 2 for 1
|
|
|
