It’s hard to fathom a world without Walmart (NYSE: WMT). The company opened its first discount store in the early 1960s and conducted its initial public offering (IPO) in October 1970.
If you were lucky and astute enough to buy just one share during its early days as a public company, you’d have many more due to subsequent stock splits.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
Exactly how many shares would you own? Tracking the stock split history and doing some multiplication will provide the answer.
Image source: Getty Images.
Walmart has declared 12 stock splits since its IPO. Most were 2-for-1 splits, but the exception was February’s 3-for-1 split.
Every time a 2-for-1 split occurred, your share count doubled, and the number tripled in February. Hence, your one share turned into 6,144 shares.
The unadjusted split price was $16.50. While your share count went up, the price went down by the same portion. That means the $16.50 becomes a split-adjusted $0.0027 (i.e., well below a penny a share). The stock closed at $94.25 on Dec. 13, giving long-term investors a handsome gain.
You also would’ve collected dividends for more than 50 years. Walmart’s first quarterly payout was in March 1974, and the board of directors has subsequently raised them each year. That makes the company a Dividend King.
It last increased the quarterly payout in February. Walmart currently pays $0.2075 per quarter, up more than 9% from the previous year’s split-adjusted $0.19.
Walmart’s simple business plan, keeping costs down and passing the savings along to customers, has resonated with shoppers. It has also proven very profitable and rewarding to shareholders. With its ultra-low everyday prices, it’s tough for competitors to undercut the company, and this should continue to prove rewarding for patient shareholders.
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $349,279!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $48,196!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $490,243!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of December 16, 2024
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
