Generate Passive Income as This Dividend Payer Eyes a Stock Split
Since 1980, businesses that have announced stock splits have nearly tripled the returns of the S&P 500 Index over the following 12 months. This figure is pretty shocking, as technically nothing changes within a corporation or about its value when it goes through a split.
So what's going on?
Often, stock splits make high-priced shares more accessible to individual investors -- though that impact is diminishing now that brokers widely offer the option of buying fractional shares. Occasionally, the maneuver is used to position a company to join the Dow Jones Industrial Average, which requires a lower share price due to its price-weighted formula.
Source Fool.com
