Coca-Cola: Buy The Split Or The Dividend Growth?
By Tradevestor:By now everyone knows about Coca-Cola's (KO) proposed stock split. Or so we thought. We were surprised to see no articles have been published so far on Seeking Alpha about the stock split. A recent article on MarketWatch talked about how stocks that split shot up in price for no apparent reason. When a stock splits, the financials do not change and neither does the business outlook. But maybe it's human psychology that makes people think a $50 stock is "cheaper" than a $100 stock. The article goes on to list a few instances of the stock gaining value once the split is executed. However, one can also find an equal number of cases where the stock did not move much after a split. When one looks at why Coke has increased in price after splits, you can see a parallel with increasing dividends and increasing earnings. But the articleComplete Story »
- Original article
- Login or register to post comments
