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 Video: What is a Stock Split?
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| Southwest Airlines Co. (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the U.S. and near-international markets. Co.'s fare products include four categories: Wanna Get Away, Wanna Get Away Plus, Anytime, and Business Select to provide customers options when choosing a fare. It offers ancillary services, such as EarlyBird Check-In, Upgraded Boarding, and transportation of pets and unaccompanied minors, in accordance with Southwest's respective policies. EarlyBird Check-In provides customers with automatic check-in and an assigned boarding position before general boarding positions become available. According to our Southwest Airlines stock split history records, Southwest Airlines has had 11 splits. | |
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Southwest Airlines (LUV) has 11 splits in our Southwest Airlines stock split history database. The first split for LUV took place on September 23, 1980. This was a 3 for 2
split, meaning for each 2
shares of LUV 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. LUV's second split took place on October 23, 1981. This was a 5 for 4
split, meaning for each 4
shares of LUV owned pre-split, the shareholder now owned 5 shares. For example, a 1500 share position pre-split, became a 1875 share position following the split. LUV's third split took place on January 24, 1983. This was a 2 for 1
split, meaning for each share of LUV owned pre-split, the shareholder now owned 2 shares. For example, a 1875 share position pre-split, became a 3750 share position following the split. LUV's 4th split took place on January 30, 1984. This was a 5 for 4
split, meaning for each 4
shares of LUV owned pre-split, the shareholder now owned 5 shares. For example, a 3750 share position pre-split, became a 4687.5 share position following the split. LUV's 5th split took place on August 30, 1990. This was a 3 for 2
split, meaning for each 2
shares of LUV owned pre-split, the shareholder now owned 3 shares. For example, a 4687.5 share position pre-split, became a 7031.25 share position following the split. LUV's 6th split took place on July 16, 1992. This was a 2 for 1
split, meaning for each share of LUV owned pre-split, the shareholder now owned 2 shares. For example, a 7031.25 share position pre-split, became a 14062.5 share position following the split. LUV's 7th split took place on July 16, 1993. This was a 3 for 2
split, meaning for each 2
shares of LUV owned pre-split, the shareholder now owned 3 shares. For example, a 14062.5 share position pre-split, became a 21093.75 share position following the split. LUV's 8th split took place on November 28, 1997. This was a 3 for 2
split, meaning for each 2
shares of LUV owned pre-split, the shareholder now owned 3 shares. For example, a 21093.75 share position pre-split, became a 31640.625 share position following the split. LUV's 9th split took place on August 21, 1998. This was a 3 for 2
split, meaning for each 2
shares of LUV owned pre-split, the shareholder now owned 3 shares. For example, a 31640.625 share position pre-split, became a 47460.9375 share position following the split. LUV's 10th split took place on July 20, 1999. This was a 3 for 2
split, meaning for each 2
shares of LUV owned pre-split, the shareholder now owned 3 shares. For example, a 47460.9375 share position pre-split, became a 71191.40625 share position following the split. LUV's 11th split took place on February 16, 2001. This was a 3 for 2 split, meaning for each 2 shares of LUV owned pre-split, the shareholder now owned 3 shares. For example, a 71191.40625 share position pre-split, became a 106787.109375 share position following the split.
When a company such as Southwest Airlines 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 Southwest Airlines stock split history from start to finish, an original position size of 1000 shares would have turned into 106787.109375 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Southwest Airlines shares, starting with a $10,000 purchase of LUV, presented on a split-history-adjusted basis factoring in the complete Southwest Airlines stock split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
02/18/2015 |
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| End date: |
02/14/2025 |
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| Start price/share: |
$43.55 |
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| End price/share: |
$30.28 |
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| Starting shares: |
229.62 |
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| Ending shares: |
254.52 |
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| Dividends reinvested/share: |
$4.24 |
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| Total return: |
-22.93% |
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| Average Annual Total Return: |
-2.57% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$7,708.29 |
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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: |
02/18/2015 |
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| End date: |
02/14/2025 |
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| Start price/share: |
$43.55 |
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| End price/share: |
$30.28 |
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| Dividends collected/share: |
$4.24 |
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| Total return: |
-20.73% |
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| Average Annual Total Return: |
-2.30% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$7,924.53 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 09/23/1980 | 3 for 2
| | 10/23/1981 | 5 for 4
| | 01/24/1983 | 2 for 1
| | 01/30/1984 | 5 for 4
| | 08/30/1990 | 3 for 2
| | 07/16/1992 | 2 for 1
| | 07/16/1993 | 3 for 2
| | 11/28/1997 | 3 for 2
| | 08/21/1998 | 3 for 2
| | 07/20/1999 | 3 for 2
| | 02/16/2001 | 3 for 2 |
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