 |
 Video: What is a Stock Split?
|
|
|
| Canon and its subsidiaries are engaged in the manufacture and sale of office multifunction devices, plain paper copying machines, laser printers, inkjet printers, cameras and lithography equipment. Co. sells its products principally under the Canon brand name and through sales subsidiaries. Each of these subsidiaries is responsible for marketing and distribution to retail dealers in an assigned territory. As of Dec. 31, 2017, Co.'s manufacturing is conducted primarily at 30 plants in Japan and 18 plants overseas. Co. operates its business in four segments: Office Business Unit, Imaging System Business Unit, Medical System Business Unit, and Industry and Others Business Unit. According to our CAJ split history records, Canon has had 2 splits. |
|
|
Canon (CAJ) has 2 splits in our CAJ split history database. The first split for CAJ took place on August 28, 2006. This was a 3 for 2 split, meaning for each 2 shares of CAJ 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. CAJ's second split took place on March 16, 1998. This was a 5 for 1 split, meaning for each share of CAJ owned pre-split, the shareholder now owned 5 shares. For example, a 1500 share position pre-split, became a 7500 share position following the split.
When a company such as Canon 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 CAJ 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 Canon shares, starting with a $10,000 purchase of CAJ, presented on a split-history-adjusted basis factoring in the complete CAJ split history.
Growth of $10,000.00
With Dividends Reinvested
|
| Start date: |
04/22/2008 |
|
| End date: |
04/20/2018 |
|
| Start price/share: |
$49.79 |
|
| End price/share: |
$36.04 |
|
| Starting shares: |
200.84 |
|
| Ending shares: |
205.20 |
|
| Dividends reinvested/share: |
$0.71 |
|
| Total return: |
-26.05% |
|
| Average Annual Total Return: |
-2.97% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$7,397.08 |
|
| Years: |
10.00 |
|
| |
Growth of $10,000.00
Without Dividends Reinvested
|
| Start date: |
04/22/2008 |
|
| End date: |
04/20/2018 |
|
| Start price/share: |
$49.79 |
|
| End price/share: |
$36.04 |
|
| Dividends collected/share: |
$0.71 |
|
| Total return: |
-26.19% |
|
| Average Annual Total Return: |
-2.99% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$7,381.85 |
|
| Years: |
10.00 |
|
|
|
| Date |
Ratio |
| 08/28/2006 | 3 for 2 | | 03/16/1998 | 5 for 1 |
|
|
