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 Video: What is a Stock Split?
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| Automatic Data Processing is a provider of cloud-based human capital management (HCM) solutions. Co. classifies its operations into the following two reportable segments: Employer Services, which serves clients ranging from single-employee small businesses to large enterprises, providing a range of technology-based HCM solutions, including payroll services, human resources management, workforce management, compliance services, insurance services and retirement services; and Professional Employer Organization, which provides clients with employment administration outsourcing solutions through a relationship in which employees who work for a client are co-employed by Co. and the client. According to our ADP split history records, Automatic Data Processing has had 3 splits. | |
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Automatic Data Processing (ADP) has 3 splits in our ADP split history database. The first split for ADP took place on September 08, 1997. This was a 3 for 2
split, meaning for each 2
shares of ADP 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. ADP's second split took place on April 02, 2007. This was a 10000 for 9033 split, meaning for each 9033 shares of ADP owned pre-split, the shareholder now owned 10000 shares. For example, a 1500 share position pre-split, became a 1660.57788110262 share position following the split. ADP's third split took place on October 01, 2014. This was a 1139 for 1000 split, meaning for each 1000 shares of ADP owned pre-split, the shareholder now owned 1139 shares. For example, a 1660.57788110262 share position pre-split, became a 1891.39820657589 share position following the split.
When a company such as Automatic Data Processing 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 ADP split history from start to finish, an original position size of 1000 shares would have turned into 1891.39820657589 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Automatic Data Processing shares, starting with a $10,000 purchase of ADP, presented on a split-history-adjusted basis factoring in the complete ADP split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/06/2014 |
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| End date: |
10/03/2024 |
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| Start price/share: |
$74.52 |
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| End price/share: |
$284.62 |
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| Starting shares: |
134.19 |
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| Ending shares: |
167.05 |
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| Dividends reinvested/share: |
$34.28 |
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| Total return: |
375.46% |
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| Average Annual Total Return: |
16.87% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$47,536.85 |
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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: |
10/06/2014 |
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| End date: |
10/03/2024 |
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| Start price/share: |
$74.52 |
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| End price/share: |
$284.62 |
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| Dividends collected/share: |
$34.28 |
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| Total return: |
327.94% |
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| Average Annual Total Return: |
15.65% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$42,801.24 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 09/08/1997 | 3 for 2
| | 04/02/2007 | 10000 for 9033 | | 10/01/2014 | 1139 for 1000 |
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