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 Video: What is a Stock Split?
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| Novartis is a holding company. Through its subsidiaries, Co. is a multinational group of companies focusing on the research, development, manufacturing and marketing of a range of pharmaceuticals and generic medicines. Co. comprises two divisions: Innovative Medicines, which researches, develops, manufactures, distributes and sells patented pharmaceuticals; and Sandoz, which develops, manufactures and markets finished dosage form medicines as well as intermediary products including active pharmaceutical ingredients, and has three franchises, Retail Generics, Anti-Infectives and Biopharmaceuticals. According to our NVS split history records, Novartis has had 2 splits. | |
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Novartis (NVS) has 2 splits in our NVS split history database. The first split for NVS took place on May 11, 2000. This was a 2 for 1
split, meaning for each share of NVS 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. NVS's second split took place on April 09, 2019. This was a 1116 for 1000 split, meaning for each 1000 shares of NVS owned pre-split, the shareholder now owned 1116 shares. For example, a 2000 share position pre-split, became a 2232 share position following the split.
When a company such as Novartis 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 NVS split history from start to finish, an original position size of 1000 shares would have turned into 2232 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Novartis shares, starting with a $10,000 purchase of NVS, presented on a split-history-adjusted basis factoring in the complete NVS split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/07/2014 |
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| End date: |
10/03/2024 |
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| Start price/share: |
$80.40 |
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| End price/share: |
$113.77 |
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| Starting shares: |
124.38 |
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| Ending shares: |
179.10 |
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| Dividends reinvested/share: |
$29.72 |
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| Total return: |
103.76% |
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| Average Annual Total Return: |
7.38% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$20,377.42 |
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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: |
10/07/2014 |
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| End date: |
10/03/2024 |
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| Start price/share: |
$80.40 |
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| End price/share: |
$113.77 |
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| Dividends collected/share: |
$29.72 |
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| Total return: |
78.47% |
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| Average Annual Total Return: |
5.97% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$17,855.02 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 05/11/2000 | 2 for 1
| | 04/09/2019 | 1116 for 1000 |
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