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 Video: What is a Stock Split?
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| Lorillard is a manufacturer of cigarettes. Newport, Co.'s main cigarette brand, includes both menthol and non-menthol product offerings. In addition to the Newport brand, Co.'s product line has four additional brand families marketed under the Kent, True, Maverick, and Old Gold brand names. As of Dec 31 2014, these five brands included 45 different product offerings. Co., through its other subsidiaries, is also a global electronic cigarette company, marketed under the blu eCigs brand. Co. sells its products primarily to wholesale distributors, who in turn service retail outlets, chain store organizations, and government agencies, including the U.S. Armed Forces. According to our LO split history records, LO has had 1 split. | |
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LO (LO) has 1 split in our LO split history database. The split for LO took place on January 16, 2013. This was a 3 for 1 split, meaning for each share of LO owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 3000 share position following the split.
When a company such as LO 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 LO split history from start to finish, an original position size of 1000 shares would have turned into 3000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into LO shares, starting with a $10,000 purchase of LO, presented on a split-history-adjusted basis factoring in the complete LO split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
01/21/2015 |
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| End date: |
06/12/2015 |
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| Start price/share: |
$65.71 |
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| End price/share: |
$71.40 |
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| Starting shares: |
152.18 |
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| Ending shares: |
155.05 |
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| Dividends reinvested/share: |
$1.32 |
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| Total return: |
10.70% |
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| Annualized Gain: |
27.71% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$11,070.00 |
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| Years: |
0.39 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
01/21/2015 |
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| End date: |
06/12/2015 |
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| Start price/share: |
$65.71 |
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| End price/share: |
$71.40 |
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| Dividends collected/share: |
$1.32 |
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| Total return: |
10.67% |
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| Annualized Gain: |
27.62% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$11,067.00 |
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| Years: |
0.39 |
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| Date |
Ratio |
| 01/16/2013 | 3 for 1 |
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