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 Video: What is a Stock Split?
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| Brown-Forman is primarily engaged in the manufacturing, bottling, importing, exporting, and marketing of a variety of alcoholic beverage brands. Co.'s principal beverage brands are, but not limited to: Jack Daniel's Tennessee Whiskey, Jack Daniel's Single Barrel, Gentleman Jack, Southern Comfort, Southern Comfort Ready-to-Drinks, Finlandia Vodka, Antiguo Tequila, Canadian Mist Blended Canadian Whisky, Chambord Liqueur, Don Eduardo Tequila, Early Times Bourbon, Early Times Kentucky Whisky, El Jimador Tequila, Herradura Tequila, Korbel California Champagnes, New Mix Ready-to-Drinks, Old Forester Bourbon, Pepe Lopez Tequilas, Tuaca Liqueur, Chambord Vodka and Woodford Reserve Bourbon. According to our BFA split history records, BFA has had 3 splits. | |
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BFA (BFA) has 3 splits in our BFA split history database. The first split for BFA took place on May 31, 1994. This was a 3 for 1
split, meaning for each share of BFA owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 3000 share position following the split. BFA's second split took place on January 21, 2004. This was a 2 for 1 split, meaning for each share of BFA owned pre-split, the shareholder now owned 2 shares. For example, a 3000 share position pre-split, became a 6000 share position following the split. BFA's third split took place on October 28, 2008. This was a 5 for 4 split, meaning for each 4 shares of BFA owned pre-split, the shareholder now owned 5 shares. For example, a 6000 share position pre-split, became a 7500 share position following the split.
When a company such as BFA 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 BFA split history from start to finish, an original position size of 1000 shares would have turned into 7500 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into BFA shares, starting with a $10,000 purchase of BFA, presented on a split-history-adjusted basis factoring in the complete BFA split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
04/29/2014 |
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| End date: |
04/26/2024 |
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| Start price/share: |
$88.68 |
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| End price/share: |
$49.46 |
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| Starting shares: |
112.76 |
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| Ending shares: |
131.83 |
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| Dividends reinvested/share: |
$10.52 |
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| Total return: |
-34.80% |
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| Average Annual Total Return: |
-4.19% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$6,517.91 |
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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: |
04/29/2014 |
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| End date: |
04/26/2024 |
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| Start price/share: |
$88.68 |
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| End price/share: |
$49.46 |
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| Dividends collected/share: |
$10.52 |
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| Total return: |
-32.36% |
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| Average Annual Total Return: |
-3.83% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$6,767.00 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 05/31/1994 | 3 for 1
| | 01/21/2004 | 2 for 1 | | 10/28/2008 | 5 for 4 |
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