Apple Inc. (NASDAQ:AAPL) shares are scheduled to split before the market opens on Monday, August 31st. Apple Inc. (NASDAQ: AAPL) broke the ranks this summer by announcing a four-for-one stock split.This was the first stock split since Apple’s seven-for-one stock split … That's when trading in the shares on the stock market will reflect the post-split price. @themotleyfool #stocks $AAPL, Apple's stock price above the $500 per share, Apple just paid an $0.82 per share quarterly dividend, 3 Top Stocks to Recession-Proof Your Portfolio, 54% of Part-Time Workers Think Retirement Is Unrealistic for Them -- and They May Be Right, Dow Jones Tumbles to Start 2021; Apple Called Top FAANG Stock; Coca-Cola Stock Downgraded, Copyright, Trademark and Patent Information. The company is aiming to make it easier for more investors to get in on the action with a stock split … Following its 4-for-1 stock split, Apple's shares are now trading for roughly 75% less than they were before. Had Apple never split the stock… That way, the total dividend payment received will be the same for those who kept the four post-split shares. The newly created shares will be issued to shareholders after the closing bell on Friday, August 28th. Stock Advisor launched in February of 2002. The move marks the first time in six years that the tech giant has split its shares. Here's What You Need to Know. The fifth-generation wireless technology could help to spur hundreds of millions of device sales in the coming year, driving Apple's sales and profits sharply higher. The first split for AAPL took place on June 16, 1987. First of all, investors need to understand that a stock split does not change the fundamental value of a business. Apple hasn't yet declared a dividend for the period after the split. Another reason is that investors who could not afford to buy a share at $500 may now be able to buy one at $125. Of course, the stock price has also split by 4 and effectively the dividend has as well! At the time, Apple was trading above $600 per share. And in the months following the stock split, we can expect AAPL shares to receive $0.205 per share. Apple's 4-for-1 split, which takes effect on Aug. 31, would drop its price to about $117 and boot its Dow ranking all the way down to 16th or 17th as the weighting plunges to just 3.1%. In Apple's case, investors received three new shares for each share they owned. So if you paid $400 per share for your Apple stock, your tax basis will be $100 per share after the split. Apple shares have rallied about 25% since the company announced the split at the end of July. For instance, if a stock … As you'll see in more detail below, that's not the case. Yep. At the same time, Apple's stock price will be quartered, from about $400 now to about $100 when the split happens. It's easy to get confused about what happens if you buy or sell shares between the record date and the split date. Tim Cook made Apple the stock of the decade by following some key trends. Finally, the last date you need to know is Monday, Aug. 31. Those four shares are now worth one-quarter of the original share's price. Cumulative Growth of a $10,000 Investment in Stock Advisor, Apple's Stock Split Today. Please see the "Historical Prices" tab for adjusted price values. Apple declared a dividend last week of $0.82 per share. The dividend amount will also be divided by 7 going forward. For many investors, this will be the first time that they've dealt with a stock split. If you then sell it for $125 per share, you'll have a $25 per share gain -- not bad based on the $400 you paid for pre-split shares. Cumulative Growth of a $10,000 Investment in Stock Advisor, Apple's Stock Split: How Will It Actually Work? If you buy the stock, you'll be the one to receive the extra split shares in your account. For example, a 1000 share position pre-split, became a 2000 share position following the split. Stock splits simply divide up a company into more pieces, with the value of each piece reduced in kind. That would make the next dividend about $0.21 … And nothing is more important for Apple in this regard than the iPhone. Apple recently made a shareholder friendly move by splitting its stock. He was late to the cloud but caught up. For each Apple share you owned prior to the split, you'll see a total of four shares after the stock split takes effect. Apple has grown increasingly dominant, and its stock is soaring to new heights. What actually happened is that Apple did a 4:1 stock split, meaning that your 1 share of Apple stock has now split into 4 shares. This marks Apple’s fifth stock split in its time as a public company. Then, investors will be able to get back to paying more attention to Apple's fundamental growth prospects in evaluating what the next move is for the tech stock. The dividend is payable on August 13, 2020 to shareholders of … Market data powered by FactSet and Web Financial Group. Now, Joe’s mission is to pass on what he’s learned -- and what he continues to learn -- as a contributing writer to Fool.com. There were 2-for-1 splits in February 2005, June 2000, and May 1987. That means investors will … Image source: Getty Images. @themotleyfool #stocks $AAPL, 3 Top Stocks to Recession-Proof Your Portfolio, 54% of Part-Time Workers Think Retirement Is Unrealistic for Them -- and They May Be Right, Dow Jones Tumbles to Start 2021; Apple Called Top FAANG Stock; Coca-Cola Stock Downgraded, Copyright, Trademark and Patent Information. Apple split each of its shares into four. Find the latest dividend history for Apple Inc. Common Stock (AAPL) at Nasdaq.com. The last Apple (ticker: AAPL) split was 7-for-1, in June 2014. The stock was up 2.6% to $128 on Monday. Say you own 100 shares of AAPL today. He battle-tested his investment philosophy and strategies as portfolio manager of Tier 1, a market-crushing Motley Fool real-money portfolio that delivered 24.58% annualized returns during its existence. Prices shown are actual historical values and are not adjusted for either splits or dividends. Brokerage companies will handle processing according to their own procedures. So will owners of Apple stock before the 4-to-1 split have four times the amount of shares once the stock splits? The 4-1 split was announced on Thursday, July 30th. 4-for-1 Stock Split: July 30, 2020: August 10, 2020: August 13, 2020: $.82: Regular Cash: April … Stock Advisor launched in February of 2002. Apple (NASDAQ:AAPL) recently announced that it will do a 4-for-1 stock split. Apple has split its stock four times in its history as a public company. A stock split is an action taken by a company to divide its existing shares into multiple shares. Returns as of 01/06/2021. However, you shouldn't necessarily expect the new shares to show up at 4:01 p.m. EDT on Friday. This was a 2 for 1 split, meaning for each share of AAPL owned pre-split, the shareholder now owned 2 shares. One reason is that less-experienced investors might not understand exactly how stock splits work and are simply excited about the chance to own more shares of Apple. One already happened on Monday, Aug. 24: the record date. Stock Splits After the Record Date . Returns as of 01/06/2021. But remember, each shareholder will have four shares for every share they used to own. Several analysts weighed in on … Apple CFO Luca Maestri said on its third quarter earnings call that the split is intended to make Apple's stock "more accessible to a broader base of investors." Read with Free Trial. If you want to trade post-split shares, you'll have to wait until Aug. 31. Said differently, it's possible that Apple's stock could surrender some of its recent gains now that the split has occurred. Stock split history for Apple since 1980. Fortunately, understanding how it works is much simpler than understanding why it works that way. You still have the same amount of money, it's just divided into more portions. However, what usually happens is that the per-share dividend payment gets adjusted to reflect it. Apple Split Raises Dividend Question. Apple investors need to understand three key dates associated with the split. It's a fair question, and one with multiple answers. Dan Caplinger has been a contract writer for the Motley Fool since 2006. Going forward, though, you'll want to remember that your cost basis on a per-share basis will also get reduced by the 4-for-1 split ratio. So, while you’re now only receiving ¼ of the dividend, you have 4x the shares, so you’re effectively neutral. Apple also has declared a cash dividend of $0.82 per share of the Company's common stock. But if a stock split doesn't change the value of a company, why has Apple's stock price run up so much ahead of its split and continues to rise after the split? Apple completed its fifth stock split on Monday, as investors received four shares for every one share held. That might make it sound as though a shareholder could sell their Apple shares after Aug. 24 and still be entitled to keep the extra shares from the split. So for instance, Apple just paid an $0.82 per share quarterly dividend in early August. Immediately after the split, the investor would own 400 shares of Apple stock, but the market price would be $100 per share instead of $400 per share. Profits are what ultimately determines a company's -- and, by extension, a stock's -- true value. Market data powered by FactSet and Web Financial Group. The split quartered Apple's stock price, which went from about $500 last week to … Perhaps the best explanation is that professional traders know that many people do get excited about splits, and so they buy the stock ahead of what they expect will be a herd of individual investors rushing in to buy shares after the split is announced. To answer this question, investors should shift their focus from the stock split to the true drivers of Apple's long-term value. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. This new dividend gives Apple an approximately 2.5 percent dividend. Let’s also assume that Apple’s stock price doesn’t move up or down between the Record Date and the time the split actually takes place. Shares of Apple's (NASDAQ:AAPL) stock are suddenly a whole lot more affordable. The dividend is payable on August 13, to shareholders of record as of the close of business on August 10. The tech titan's shares began trading at their new split-adjusted price Monday. After that, all trades will reflect the split. It's understandable that you might have questions about how it works. Apple (AAPL) has 5 splits in our Apple stock split history database. The Board of Directors has also approved a four-for-one stock split to make the stock more accessible to a broader base of investors. It should continue the trend, rewarding long-time stockholders and more seasoned investors on the prowl for income. He has split the stock twice and instituted a dividend. Fortunately, the company appears to be gearing up for a 5G-driven sales bonanza for the newest version of its prized product. Here's another way to think about it: A 4-for-1 stock split is like exchanging a $1 bill for four quarters. However, what usually happens is that the per-share dividend payment gets adjusted to reflect it. Prior to the stock split, shareholders will receive a quarterly cash dividend of $0.82 per share. With all the hype about Apple's stock split, it'll be good to get the mechanics over with. Its stock, in turn, remains a buy post-split. The split brought shares of Apple to about $92 a share. So, if you owned one share of Apple worth roughly $500 on Friday, today you own four shares worth approximately $125. The stock split has no immediate tax consequences. If Apple maintains its 21 cent a share dividend, that payment will be split evenly among the new shares. Because it's a 4-for-1 split, the new price should be roughly a quarter of the old price. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Apple’s dividend will also be adjusted. The total value of the combined Apple shares before the split, therefore, would be $2,000. It's a relatively painless process when a company splits its shares, but it's still important to have a good sense of what's going to happen along the way. As Apple itself described it, that's the date upon which the company "determine[d] which shareholders are entitled to receive additional shares due to the split.". Perhaps the biggest news of the report was … Put simply, if you place a trade anytime between now and close of business on Friday, Aug. 28, then you'll be trading the pre-split shares. After the close of business, shareholders will actually receive the extra shares in their brokerage accounts. It went public in December 1980. It set off another round of optimism that sent Apple's stock price above the $500 per share mark. Get … The iPhone giant announced after the market closed Thursday that its board approved a 4-for-1 stock split for every shareholder of record at the close of business on August 24. And in this regard, Apple's future is bright. It follows a similar move Apple made in 2014, when it offered a 7-to-1 stock split. Apple’s decision to do a 4-to-1 stock split was an attempt to increase demand for its shares. (Though this is less of a factor today, now that many brokers allow their customers to buy fractional shares.). Apple conducted a seven-for-one split on June 9, 2014, and two-for-one splits … As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. That will make the total value of four new shares approximately equal to the value of one pre-split share. But if a stock split doesn't change the value of a company, why has Apple's stock price run up so much ahead of its split and continues to rise after the split?. However, none of this alters Apple's long-term value, and so the effects can be fleeting. Whomever you sold those pre-split shares to will also get the additional shares. This occurs before the stock split, so you’ll get $3.20 per share you have now, not after the stock split in June. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. FAANG name Apple, Inc (NASDAQ:AAPL) surprised investors in its July 30 earnings call announcing a four-for-one stock split. After the stock split, the dividend amount also will be divided by four. 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