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 Video: What is a Stock Split?
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| Donegal Group is an insurance holding company. Through its insurance subsidiaries, Co. provides personal and commercial lines of property and casualty coverages through a network of independent insurance agents in Mid-Atlantic, Midwestern, New England, Southern and Southwestern states. Co.'s insurance operations consist of two segments: commercial lines of insurance and personal lines of insurance. The commercial lines Co.'s insurance subsidiaries write consists primarily of commercial automobile, commercial multi-peril and workers' compensation insurance. The personal lines Co.'s insurance subsidiaries write consists primarily of private passenger automobile and homeowners insurance. According to our DGICA split history records, Donegal Group has had 2 splits. | |
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Donegal Group (DGICA) has 2 splits in our DGICA split history database. The first split for DGICA took place on March 29, 2005. This was a 4 for 3 split, meaning for each 3 shares of DGICA owned pre-split, the shareholder now owned 4 shares. For example, a 1000 share position pre-split, became a 1333.33333333333 share position following the split. DGICA's second split took place on April 27, 2006. This was a 4 for 3 split, meaning for each 3 shares of DGICA owned pre-split, the shareholder now owned 4 shares. For example, a 1333.33333333333 share position pre-split, became a 1777.77777777778 share position following the split.
When a company such as Donegal Group 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 DGICA split history from start to finish, an original position size of 1000 shares would have turned into 1777.77777777778 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Donegal Group shares, starting with a $10,000 purchase of DGICA, presented on a split-history-adjusted basis factoring in the complete DGICA 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: |
$15.39 |
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| End price/share: |
$14.19 |
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| Starting shares: |
649.77 |
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| Ending shares: |
975.65 |
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| Dividends reinvested/share: |
$5.99 |
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| Total return: |
38.45% |
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| Average Annual Total Return: |
3.31% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$13,850.40 |
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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: |
$15.39 |
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| End price/share: |
$14.19 |
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| Dividends collected/share: |
$5.99 |
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| Total return: |
31.15% |
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| Average Annual Total Return: |
2.75% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$13,117.49 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 03/29/2005 | 4 for 3 | | 04/27/2006 | 4 for 3 |
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