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KO is splitting

April 26th, 2012 at 09:20 pm

Well, possibly. I know, I know, when a stock splits two to one, I get twice as many shares for half the price. Net worth is the same. KO pays a dividend, and after the split that is also halved to keep the dividend from doubling.

Still it makes me giddy - not necessarily right away, but afterward because a year or two later, when the dividend rises by a penny, it for all intents and purposes rises by two pennies. I have enough that when I reinvest I buy an additional share, after the split I buy two. (the dividend amount stays the same, but if the share price drops I buy twice as much)

I remember about 8-9 years ago when I would dutifully put in $50 into KO, and when it was in the low to mid 40s, I would buy at least one. Now its at around 75$, and I look forward after the split (75/2) to perhaps buy a little bit more.

Much better for the waistline if I buy a Coke share rather than a Coke.

2 Responses to “KO is splitting”

  1. Single Guy Says:

    I have KO in my Roth (100 shares). I'm happy with the return since early 2010 when I bought them though I wonder how buying KO will do going forward. I'm a little reluctant right now to buy more, though I may regret hesitating.

  2. baselle Says:

    Right now I think that fallout from the obesity epidemic is KOs biggest issue. Even worldwide, one cannot drink infinite amounts of soda.

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