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 Video: What is a Stock Split?
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| Honda Motor Co Ltd is a Japan-based company principally engaged in the motorcycle business, the automobile business, the financial service business and the life creation business. Co. operates through four business segments. The Motorcycle segment is engaged in the research and development, production and sale of motorcycles, all-terrain vehicles (ATVs), side-by-side vehicles and related parts. The Automobile segment is engaged in the research and development, production and sale of automobiles and related parts. The Financial Service segment is engaged in the sales financing and leasing of its products. According to our HMC split history records, Honda Motor has had 2 splits. | |
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Honda Motor (HMC) has 2 splits in our HMC split history database. The first split for HMC took place on April 03, 1989. This was a 5 for 1
split, meaning for each share of HMC owned pre-split, the shareholder now owned 5 shares. For example, a 1000 share position pre-split, became a 5000 share position following the split. HMC's second split took place on January 10, 2002. This was a 4 for 1 split, meaning for each share of HMC owned pre-split, the shareholder now owned 4 shares. For example, a 5000 share position pre-split, became a 20000 share position following the split.
When a company such as Honda Motor 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 HMC split history from start to finish, an original position size of 1000 shares would have turned into 20000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Honda Motor shares, starting with a $10,000 purchase of HMC, presented on a split-history-adjusted basis factoring in the complete HMC split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
11/10/2015 |
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| End date: |
11/06/2025 |
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| Start price/share: |
$32.66 |
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| End price/share: |
$30.41 |
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| Starting shares: |
306.18 |
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| Ending shares: |
402.86 |
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| Dividends reinvested/share: |
$8.03 |
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| Total return: |
22.51% |
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| Average Annual Total Return: |
2.05% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$12,249.15 |
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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: |
11/10/2015 |
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| End date: |
11/06/2025 |
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| Start price/share: |
$32.66 |
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| End price/share: |
$30.41 |
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| Dividends collected/share: |
$8.03 |
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| Total return: |
17.70% |
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| Average Annual Total Return: |
1.64% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$11,765.96 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 04/03/1989 | 5 for 1
| | 01/10/2002 | 4 for 1 |
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