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 Video: What is a Stock Split?
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| Family Dollar Stores operates a chain of general merchandise retail discount stores, providing consumers with a selection of merchandise in neighborhood stores. Co.'s merchandise assortment includes Consumables, Home Products, Apparel and Accessories, and Seasonal and Electronics. Co. sells merchandise at prices that generally range from less than $1 to $10. Co. provides a focused assortment of merchandise in a number of core categories, such as health and beauty aids, packaged food and refrigerated products, tobacco products, home cleaning supplies, housewares, stationery, seasonal goods, apparel, and home fashions. At Aug 31 2014, Co. operated 8,042 stores. According to our FDO split history records, FDO has had 3 splits. | |
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FDO (FDO) has 3 splits in our FDO split history database. The first split for FDO took place on February 27, 1992. This was a 2 for 1
split, meaning for each share of FDO 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. FDO's second split took place on August 01, 1997. This was a 3 for 2
split, meaning for each 2
shares of FDO 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. FDO's third split took place on May 01, 1998. This was a 2 for 1
split, meaning for each share of FDO 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.
When a company such as FDO 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 FDO split history from start to finish, an original position size of 1000 shares would have turned into 6000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into FDO shares, starting with a $10,000 purchase of FDO, presented on a split-history-adjusted basis factoring in the complete FDO split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
06/11/2013 |
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| End date: |
07/06/2015 |
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| Start price/share: |
$63.23 |
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| End price/share: |
$79.39 |
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| Starting shares: |
158.15 |
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| Ending shares: |
162.22 |
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| Dividends reinvested/share: |
$1.71 |
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| Total return: |
28.78% |
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| Average Annual Total Return: |
13.01% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$12,878.70 |
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| Years: |
2.07 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
06/11/2013 |
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| End date: |
07/06/2015 |
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| Start price/share: |
$63.23 |
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| End price/share: |
$79.39 |
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| Dividends collected/share: |
$1.71 |
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| Total return: |
28.26% |
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| Average Annual Total Return: |
12.79% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$12,826.89 |
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| Years: |
2.07 |
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| Date |
Ratio |
| 02/27/1992 | 2 for 1
| | 08/01/1997 | 3 for 2
| | 05/01/1998 | 2 for 1
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