Stock split companies are all the rage on Wall Street right now.
A stock split allows a publicly traded company to change its share price and number of outstanding shares without affecting its market capitalization or operating performance. While all eyes are on high-profile stock split stocks like Nvidia And Broadcomboth of which recently announced 10-for-1 forward splits, investors shouldn’t overlook the proven companies that are true stock split champions.
Drink behemoth Coca Cola (NYSE:KO) is a perfect example.
Unraveling the history of Coca-Cola’s stock split
On September 5, 1919, Coca-Cola debuted as a publicly traded company on the New York Stock Exchange at an initial public offering price of $40 per share. Over the past 105 years, this iconic company has implemented ten stock splits and one stock dividend:
This means that as of June 21, a single share purchased in 1919 would have grown to a total of 9,216 shares, worth $578,488.32, excluding dividends.
Is Coca-Cola still a great company?
Admittedly, Coca-Cola shares have performed poorly in the current bull market. But when push comes to shove, Coca-Cola has competitive advantages that make it a phenomenal company.
Coca-Cola has more than two dozen global brands that generate at least $1 billion in annual sales, and operates in all but three countries worldwide (North Korea, Cuba and Russia). Kantar’s ‘Brand Footprint’ report also shows that Coca-Cola has been the most chosen brand by consumers for twelve consecutive years.
Moreover, Coca-Cola’s marketing talent is of the highest level. It relies on well-known brand ambassadors and digital campaigns to connect with younger audiences, while leaning on more than a century of history to connect with adult consumers.
For long-term investors, Coca-Cola stock is still buzzing with opportunity (and a solid dividend).
Should You Invest $1,000 in Coca-Cola Now?
Before you buy Coca-Cola stock, consider the following:
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
If you bought one share of Coca-Cola at the IPO, this is how many shares you would own now. originally published by The Motley Fool
