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 Video: What is a Stock Split?
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| Watsco, Inc. is engaged in the distribution of air conditioning, heating and refrigeration equipment and related parts and supplies (HVAC/R) with locations in the U.S., Canada, Mexico, and Puerto Rico, and on an export basis to Latin America and the Caribbean. Co. sells products to the commercial refrigeration market, which include condensing units, compressors, evaporators, valves, refrigerants, walk-in coolers, and ice machines for industrial and commercial applications. It also sells a variety of non-equipment products including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats, and air quality products. According to our WSO split history records, Watsco has had 4 splits. | |
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Watsco (WSO) has 4 splits in our WSO split history database. The first split for WSO took place on May 16, 1995. This was a 3 for 2
split, meaning for each 2
shares of WSO owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 1500 share position following the split. WSO's second split took place on June 17, 1996. This was a 3 for 2
split, meaning for each 2
shares of WSO owned pre-split, the shareholder now owned 3 shares. For example, a 1500 share position pre-split, became a 2250 share position following the split. WSO's third split took place on August 17, 1998. This was a 3 for 2
split, meaning for each 2
shares of WSO owned pre-split, the shareholder now owned 3 shares. For example, a 2250 share position pre-split, became a 3375 share position following the split. WSO's 4th split took place on April 09, 1992. This was a 105 for 100 split, meaning for each 100 shares of WSO owned pre-split, the shareholder now owned 105 shares. For example, a 3375 share position pre-split, became a 3543.75 share position following the split.
When a company such as Watsco 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 WSO split history from start to finish, an original position size of 1000 shares would have turned into 3543.75 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Watsco shares, starting with a $10,000 purchase of WSO, presented on a split-history-adjusted basis factoring in the complete WSO split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
11/13/2015 |
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| End date: |
11/11/2025 |
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| Start price/share: |
$120.86 |
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| End price/share: |
$353.50 |
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| Starting shares: |
82.74 |
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| Ending shares: |
112.50 |
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| Dividends reinvested/share: |
$75.35 |
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| Total return: |
297.68% |
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| Average Annual Total Return: |
14.80% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$39,772.52 |
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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: |
11/13/2015 |
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| End date: |
11/11/2025 |
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| Start price/share: |
$120.86 |
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| End price/share: |
$353.50 |
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| Dividends collected/share: |
$75.35 |
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| Total return: |
254.83% |
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| Average Annual Total Return: |
13.50% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$35,490.27 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 05/16/1995 | 3 for 2
| | 06/17/1996 | 3 for 2
| | 08/17/1998 | 3 for 2
| | 04/09/1992 | 105 for 100 |
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