|
Video: What is a Stock Split?
|
|
Union Pacific, through its principal operating subsidiary, Union Pacific Railroad Company, is a Class I railroad operating in the U.S. Co.'s network includes route miles, connecting Pacific Coast and Gulf Coast ports with the Midwest and Eastern U.S. gateways and providing several corridors to main Mexican and Canadian gateways. Co. serves the western two-thirds of the country and maintain coordinated schedules with other rail carriers to move freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada, and Mexico. Co. has Bulk, Industrial, and Premium commodity groups. According to our UNP split history records, Union Pacific has had 5 splits. | |
|
Union Pacific (UNP) has 5 splits in our UNP split history database. The first split for UNP took place on May 12, 1980. This was a 2 for 1
split, meaning for each share of UNP 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. UNP's second split took place on October 02, 1991. This was a 2 for 1
split, meaning for each share of UNP owned pre-split, the shareholder now owned 2 shares. For example, a 2000 share position pre-split, became a 4000 share position following the split. UNP's third split took place on May 29, 2008. This was a 2 for 1 split, meaning for each share of UNP owned pre-split, the shareholder now owned 2 shares. For example, a 4000 share position pre-split, became a 8000 share position following the split. UNP's 4th split took place on October 16, 1996. This was a 10000 for 6724 split, meaning for each 6724 shares of UNP owned pre-split, the shareholder now owned 10000 shares. For example, a 8000 share position pre-split, became a 11897.6799524093 share position following the split. UNP's 5th split took place on June 09, 2014. This was a 2 for 1 split, meaning for each share of UNP owned pre-split, the shareholder now owned 2 shares. For example, a 11897.6799524093 share position pre-split, became a 23795.3599048186 share position following the split.
When a company such as Union Pacific 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 UNP split history from start to finish, an original position size of 1000 shares would have turned into 23795.3599048186 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Union Pacific shares, starting with a $10,000 purchase of UNP, presented on a split-history-adjusted basis factoring in the complete UNP split history.
Growth of $10,000.00
With Dividends Reinvested
|
Start date: |
10/07/2014 |
|
End date: |
10/03/2024 |
|
Start price/share: |
$106.37 |
|
End price/share: |
$240.63 |
|
Starting shares: |
94.01 |
|
Ending shares: |
117.19 |
|
Dividends reinvested/share: |
$36.59 |
|
Total return: |
182.00% |
|
Average Annual Total Return: |
10.93% |
|
Starting investment: |
$10,000.00 |
|
Ending investment: |
$28,207.64 |
|
Years: |
10.00 |
|
|
Growth of $10,000.00
Without Dividends Reinvested
|
Start date: |
10/07/2014 |
|
End date: |
10/03/2024 |
|
Start price/share: |
$106.37 |
|
End price/share: |
$240.63 |
|
Dividends collected/share: |
$36.59 |
|
Total return: |
160.61% |
|
Average Annual Total Return: |
10.06% |
|
Starting investment: |
$10,000.00 |
|
Ending investment: |
$26,072.40 |
|
Years: |
10.00 |
|
|
|
Date |
Ratio |
05/12/1980 | 2 for 1
| 10/02/1991 | 2 for 1
| 05/29/2008 | 2 for 1 | 10/16/1996 | 10000 for 6724 | 06/09/2014 | 2 for 1 |
|
|