Apple’s Stock Is About to Split 4-for-1. Here’s What It Means for Investors.

Market Watch ^ | Published: Aug. 28, 2020 at 12:39 p.m. ET | By Eric J. Savitz

[Red Badger]

AAPL -0.12% SPX +0.20% DJIA +0.27% MSFT +0.30%

Apple’s 4-for-1 stock split goes into effect at the close of trading Friday.

In theory, stock splits like this one don’t mean much. If today you own 100 shares worth $500 each, on Monday you will have 400 shares worth $125 each. But it turns out that splits matter more than you’d logically think.

The last Apple (ticker: AAPL) split was 7-for-1, in June 2014. There were 2-for-1 splits in February 2005, June 2000, and May 1987. Had Apple never split the stock, the current share price would be around $28,000. Apple says the decision to split the stock reflects a desire to make the stock accessible to a broader base of investors.

With the split, Apple’s share count jumps to 17.1 billion.

[Red Badger]

Ping!...................

[WKUHilltopper]

“Here’s What It Means for Investors.”

Nothing. Splits don’t do anything for stockholders.

[Red Badger]

Not current ones, true....................

[Balding_Eagle]

“The stock has also outperformed after splits, by 700 basis points after three months, and 610 basis points after 6 months.”

[CurlyDave]

“Here’s What It Means for Investors.”

Nothing. Splits don’t do anything for stockholders.

Mostly true, but for some people there is a minor improvement. We give to our church by donating highly appreciated shares of AAPL. (The tax advantages are nice.) A lower share price means we can come closer to giving any particular amount.

[Chauncey Gardiner]

Gotta check investments to see if I have any...

[hinckley buzzard]

Depends on the overall market for the stock. At one time I had Etrade bought at 25. It went to 100 when it split 4 for one. Back to 25, it quickly rose again to 100, where it once again split 4 for one. Of course that was during the dot com bubble, but in the current tech bull market, AAPL is at 500. After Friday it will be about 125. It could easily go to 200 fairly quickly. We shall see.

[Vigilanteman]

If you can't afford to own Apple, you can by the Motley Fool exchange traded fund which owns all of their recommendations, including Apple.

It is a very affordable $32 or so per share and has an easy to remember symbol, TMFC.

[PIF]

If today you own 100 shares worth $500 each, on Monday you will have 400 shares worth $125 each

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yes but your 100 shares had given you a dividend of $0.82 X 100= $82. However, your 400 shares going forward with same dividend rate would be $328. And 4 X $328 = $1312 which is enough to pay off your Starbucks tab for a month.

[cherry]

if you have more shares, you get more dividends don’t you?...wish I had apple shares...

[Swordmaker]

Apple AAPL Stock splits over this weekend 4 for 1, which means that for every 1 stock share you own today, on Monday you will own 4 at one-quarter the price it was today, losing no value, but other investors will be able to buy shares at a much lower price. —PING!

Thanks to Redbadger for the head’s up!

APPLE Stock Shares Split 4 for 1 this weekend — PING!

If you want on or off the Apple/Mac/iOS Ping List, Freepmail me.

[Midwesterner53]

This Apple stock holder is looking for great things in the near future.

[Red Badger]

Well, of course you are!

Otherwise, you’d be selling!..................

[Vermont Lt]

Go into some exchange where you can buy marginal shares. I started buying drips in the mid 90’s. $50 a month into a group of stocks and it builds. It builds slowly, but it automatically reinvests. Once it gets rocking...you can see it grow fast.

[muglywump]

My wife and I bought $ 10k of Apple in 2005. We sold a few months later after realizing a $ 16k profit. Today I think it would be worth upwards of $ 200k. That would have been nice heading into retirement!

[Red Badger]

I make money the old fashioned way....................

[dirtymac]

Not so sure that statement is correct. Often the individual shares are traded higher than the original combined value. At $500 a share, a 4 to 1 split would expected to be $125. But often we will see at the end of the day the individual shares will be $130+. Also shares will now be more available to a broader market. Kind of like Berkshire-Hathaway at $326,887 is not within many investors reach regardless of the value and performance of the stock

[BunnySlippers]

I think they do. As was mentioned, one does not have to purchase a 28,000 share stock. People are more likely toi buy 100 shares at a reduced price.

[OrangeHoof]

What a stock split does is make the stock price easier for investors to swallow. The sticker shock of a $200+/per share price talks a lot of people out of buying the stock. They’d rather own 50 shares of XYZ Corp than 5 shares of Google or Apple. It’s a form of marketing.