 |
 Video: What is a Stock Split?
|
|
|
| Black Hills is a utility holding company, which operates in four segments: Electric Utilities, which generates, transmits and distributes electricity to electric utility customers in Colorado, Montana, South Dakota and Wyoming; Gas Utilities, which serves natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming; Power Generation, which produces electric power from its wind, natural gas and coal-fired generating plants and sells the electric capacity and energy primarily to its utilities under long-term contracts; and Mining, which produces coal at its mine near Gillette, WY, and sells it under long-term contracts to mine-mouth electric generation facilities. According to our BKH split history records, Black Hills has had 3 splits. |
|
|
Black Hills (BKH) has 3 splits in our BKH split history database. The first split for BKH took place on March 03, 1986. This was a 2 for 1
split, meaning for each share of BKH 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. BKH's second split took place on March 03, 1992. This was a 3 for 2
split, meaning for each 2
shares of BKH 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. BKH's third split took place on March 11, 1998. This was a 3 for 2
split, meaning for each 2
shares of BKH 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.
When a company such as Black Hills 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 BKH split history from start to finish, an original position size of 1000 shares would have turned into 4500 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Black Hills shares, starting with a $10,000 purchase of BKH, presented on a split-history-adjusted basis factoring in the complete BKH split history.
Growth of $10,000.00
With Dividends Reinvested
|
| Start date: |
08/12/2010 |
|
| End date: |
08/11/2020 |
|
| Start price/share: |
$31.07 |
|
| End price/share: |
$58.77 |
|
| Starting shares: |
321.85 |
|
| Ending shares: |
449.58 |
|
| Dividends reinvested/share: |
$16.53 |
|
| Total return: |
164.22% |
|
| Average Annual Total Return: |
10.20% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$26,426.95 |
|
| Years: |
10.01 |
|
| |
Growth of $10,000.00
Without Dividends Reinvested
|
| Start date: |
08/12/2010 |
|
| End date: |
08/11/2020 |
|
| Start price/share: |
$31.07 |
|
| End price/share: |
$58.77 |
|
| Dividends collected/share: |
$16.53 |
|
| Total return: |
142.36% |
|
| Average Annual Total Return: |
9.25% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$24,233.99 |
|
| Years: |
10.01 |
|
|
|
| Date |
Ratio |
| 03/03/1986 | 2 for 1
| | 03/03/1992 | 3 for 2
| | 03/11/1998 | 3 for 2
|
|
|
