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 Video: What is a Stock Split?
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| A.O. Smith manufactures and markets residential and commercial gas and electric water heaters, boilers, tanks and water treatment products. Co. has two segments: North America and Rest of World. Co.'s Rest of World segment is mainly comprised of China, Europe and India. In North America, Co. serves residential and commercial end markets with a range of products including: water heaters, boilers, water treatment products, and other, which consists of expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, related products and parts. The Chinese water heater market comprises of electric wall-hung, gas tankless, combi-boiler, heat pump and solar water heaters. According to our AOS split history records, Smith (A O) has had 5 splits. | |
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Smith (A O) (AOS) has 5 splits in our AOS split history database. The first split for AOS took place on August 17, 1993. This was a 2 for 1
split, meaning for each share of AOS 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. AOS's second split took place on August 18, 1998. This was a 3 for 2
split, meaning for each 2
shares of AOS owned pre-split, the shareholder now owned 3 shares. For example, a 2000 share position pre-split, became a 3000 share position following the split. AOS's third split took place on November 16, 2010. This was a 3 for 2 split, meaning for each 2 shares of AOS owned pre-split, the shareholder now owned 3 shares. For example, a 3000 share position pre-split, became a 4500 share position following the split. AOS's 4th split took place on May 16, 2013. This was a 2 for 1 split, meaning for each share of AOS owned pre-split, the shareholder now owned 2 shares. For example, a 4500 share position pre-split, became a 9000 share position following the split. AOS's 5th split took place on October 06, 2016. This was a 2 for 1 split, meaning for each share of AOS owned pre-split, the shareholder now owned 2 shares. For example, a 9000 share position pre-split, became a 18000 share position following the split.
When a company such as Smith (A O) 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 AOS split history from start to finish, an original position size of 1000 shares would have turned into 18000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Smith (A O) shares, starting with a $10,000 purchase of AOS, presented on a split-history-adjusted basis factoring in the complete AOS split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/09/2014 |
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| End date: |
10/07/2024 |
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| Start price/share: |
$23.36 |
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| End price/share: |
$88.15 |
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| Starting shares: |
428.08 |
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| Ending shares: |
498.72 |
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| Dividends reinvested/share: |
$8.52 |
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| Total return: |
339.62% |
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| Average Annual Total Return: |
15.96% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$43,980.31 |
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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: |
10/09/2014 |
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| End date: |
10/07/2024 |
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| Start price/share: |
$23.36 |
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| End price/share: |
$88.15 |
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| Dividends collected/share: |
$8.52 |
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| Total return: |
313.81% |
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| Average Annual Total Return: |
15.26% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$41,395.69 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 08/17/1993 | 2 for 1
| | 08/18/1998 | 3 for 2
| | 11/16/2010 | 3 for 2 | | 05/16/2013 | 2 for 1 | | 10/06/2016 | 2 for 1 |
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