Dividends, Popular Posts

$40 Coca-Cola Share Turns Into $9.8 Million Using the Power of Dividends

By Kanwal Sarai
Categories ▾

Glass of cola with iceLast month Coca-Cola’s board announced a two for one stock split, the first in 16 years. A stock split basically doubles the number of shares you own. If you own 100 shares in a company, and the stock splits two for one, you end up with 200 shares. Companies generally split stocks when they think their share price has gotten too expensive or if the stock is trading too high compared to similar companies’ stock. A stock split is a good thing for shareholders if the stock price continues to rise after the split.

In the last 92 years the stock has split 10 times. “If the latest proposed split is approved, the company noted that a single share purchased in 1919 for $40 would be worth more than 9,000 shares and $341,545. If dividends were reinvested annually, the share would be worth $9.8-million.”*

Did you enjoy reading this article? If so, I encourage you to sign up for my newsletter and have these articles delivered via e-mail once a month…and it’s free!

* source: The Globe and Mail, April 25, 2012

Kanwal Sarai

With more than 27 years of investing experience and a passion for investing and teaching, I demystify the world of investing. My goal is to help you grow your net worth by investing in quality dividend paying stocks. Build your own stream of increasing income today.

icon-single-twitter     icon-single-youtube     icon-single-facebook     icon-single-googleplus

Showing 2 comments
  • My Own Advisor
    Reply

    Simply AMAZING 🙂

  • Kanwal Sarai
    Reply

    Thanks for dropping by My Own Advisor! $341,545 vs $9.8 Million if dividends were reinvested annually, it is amazing, what a difference!

Leave a Comment

Start typing and press Enter to search