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.

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Source Fool.com