It's Been 26 Years Since Costco Split 2-for-1. Here's What $1,000 Invested the Day Before the Split Would Be Worth Today.
Key Points
Costco’s stock is one of the market’s highest-priced tickers, keeping it out of reach for many investors.
A stock split, however, would make its shares more accessible by lowering their cost.
Although the previous split itself had nothing to do with Costco’s big gain in the meantime, there’s no denying that bullishness often materializes around a stock split.
Although the company itself hasn't hinted that one might be on the near-term radar, with shares currently priced at almost $1,000 apiece, investors are certainly talking about the prospect of a stock split from club-membership warehouse retailer Costco Wholesale (NASDAQ: COST).
And this begs the question: When was the last time Costco split its stock, and how far has it come in the meantime?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
As for the "when," it's been a while. It was all the way back in January 2000, in fact, when the retailer initiated a 2-for-1 split of its stock, cutting its share price at the time of $98.12 in half, to $49.06. It's clearly grown a great deal since then. Indeed, had you made a $1,000 investment in this name right before this split, that holding would be worth just over $19,700 today. Nice!
Image source: Getty Images.
Such gains, of course, have nothing to do with stock splits ... or lack thereof. Splitting a stock is merely tantamount to exchanging a $20 bill for two $10 bills; the actual amount of money you're holding hasn't actually changed, just as the relative size of your stake in a company that your shares represent doesn't change due to a split. Stock splits are largely undertaken to accommodate investors who want to fine-tune the size of their positions in a particular equity.
Still, there's no denying the short-lived bullishness that often results from the market's buzz about an expected -- and then enacted -- stock split. It wouldn't necessarily be wrong to keep your eyes and ears open for one from Costco, even if it's not a reason in and of itself to own the stock.
That being said, there's certainly good reason to own a stake in Costco, whether or not the company splits its stock anytime soon.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.