Investing 102

[96z28ss]

Originally Posted by GregWeld

Okay -- but here's the REAL splits for Coke since 1919.... so my math is TAME compared to the actual numbers!


The Coca-Cola Co. is seeking its first stock split in 16 years. Here's a look at the beverage maker's 10 other stock splits in history, along with the price of the stock before the split.

1919 – Shares begin trading at $40 per share.

1927 – 2-for-1 split – $199.50

1935 – 4-for-1 split – $290

1960 – 3-for-1 split – $153.75

1965 – 2-for-1 split – $146.50

1968 – 2-for-1 split – $155

1977 – 2-for-1 split – $73.75

1986 – 3-for-1 split – $117

1990 – 2-for-1 split – $76.75

1992 – 2-for-1 split – $82.88

1996 – 2-for-1 split – $81.75

2012 – Coke seeks 2-for-1 split. Shares closed at $74.12 Tuesday

"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.

Huge difference in the amount it's worth with the reinvested dividend. The power of compounding is amazing.

[GregWeld]

Originally Posted by 96z28ss

"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.

Huge difference in the amount it's worth with the reinvested dividend. The power of compounding is amazing.

And there is the $64 million dollar answer to why you shouldn't be very concerned about when to get in.... JUST DO IT!

[GregWeld]

Kinder Morgan Partners (KMP) went EX dividend today -- so when you check the share price - it's DOWN - but it went ex $1.20 per share...

I'll take that $1.20 per share thank you very much!

[96z28ss]

Originally Posted by GregWeld

Kinder Morgan Partners (KMP) went EX dividend today -- so when you check the share price - it's DOWN - but it went ex $1.20 per share...

I'll take that $1.20 per share thank you very much!

Obviously not a big deal to you but that would mean an extra $86 for me.

Newbie question here. If the dividend is reinvested do I still pay a brokerage fee for buying that 1 stock? so would it be better to save a years worth up then buy more.

[toy71camaro]

Originally Posted by 96z28ss

Obviously not a big deal to you but that would mean an extra $86 for me.

Newbie question here. If the dividend is reinvested do I still pay a brokerage fee for buying that 1 stock? so would it be better to save a years worth up then buy more.

Not sure on your brokerage, but i know for sure with Sharebuilder i DO NOT pay a fee to reinvest the dividend.

[toy71camaro]

Looks like todays been a good day to me on the market.. I've finally got slightly over a 1% total gain back in my port, and got 2 more shares of NLY thanks to their dividend today.

[ErikLS2]

A couple things I noticed about Coke, that $40 initial share price is $547 in today's money. And, look what the company did during the great depression. Maybe it was the cocaine in it that helped.

Greg, don't forget this is Investing 102, I had to look up exogenous.

[GregWeld]

Originally Posted by 96z28ss

Obviously not a big deal to you but that would mean an extra $86 for me.

Newbie question here. If the dividend is reinvested do I still pay a brokerage fee for buying that 1 stock? so would it be better to save a years worth up then buy more.

Shouldn't be any commissions

Sorry on the road to thunderhill so posting from
My phone

[GregWeld]

Originally Posted by 96z28ss

Obviously not a big deal to you but that would mean an extra $86 for me.

Newbie question here. If the dividend is reinvested do I still pay a brokerage fee for buying that 1 stock? so would it be better to save a years worth up then buy more.

Remember that $86 is FOUR TIMES PER YEAR....and grows each quarter as you buy more shares with the reinvested dividend. It's like a snowball on a downhill slope... after a while it will take off on it's own!

Oh --- can't not post and poke you in the eye at the same time.... my Annaly (NLY) dividend this quarter was $13,750. I added 10,000 shares to the name (now 35,000 shares) so next quarter it'll be even bigger.

[96z28ss]

I have been wondering is a stock split the same as a ex-dividend date.
You have to own the stock before a certain date?

Reason I ask was I have been looking at DGAS and they announced a split.
I was reading this article and it makes it sound like people that owned the stock before April 17th get the split. Is this a differnent type of stock split?

"The Board of Directors of Delta Natural Gas Company, Inc. (NASDAQ: DGAS - News), at its meeting on February 17, 2012, declared a two-for-one stock split of the Corporation’s issued and outstanding common stock for shareholders of record as of April 17, 2012. In its Order dated March 8, 2012, the Kentucky Public Service Commission approved the two-for-one stock split. The additional shares to be issued in the stock split are expected to be distributed, and the stock split completed, on May 1, 2012.

As a result of the two-for-one stock split, for every one share of Delta Natural Gas Company, Inc. common stock owned by a shareholder as of the close of business on April 17, 2012, the shareholder will on May 1, 2012 own two shares of Delta Natural Gas Company, Inc. common stock. Delta Natural Gas Company, Inc. is expected to commence trading on the NASDAQ Global Market on a post-split basis at the opening of the market on May 2, 2012.

The Company currently has 3,407,550 shares of common stock outstanding. After the stock split, the current number of shares of common stock outstanding will increase to 6,815,100 shares.

For additional information and a list of frequently asked questions (FAQs) related to the two-for-one stock split, please refer to Delta Natural Gas Company’s website at www.deltagas.com.

Glenn R. Jennings, Chairman of the Board, President and Chief Executive Officer of Delta Natural Gas Company, Inc., stated, “We would like to thank all shareholders for their continued support and trust in Delta Natural Gas Company, Inc.”