Microsoft (MSFT 0.48%) is one of the stocks you probably wish you had scooped up at its initial public offering (IPO). The tech giant debuted as a public company on the Nasdaq at $21 per share on March 13, 1986, and now the price is 19x higher, closing at $399.61 on Aug. 6.
Even if you didn't catch Microsoft at its two-figure price tag, its stock has had some enviable price appreciation over the last 10 years. The company's remarkable growth streak has pushed it into the elite $3 trillion dollar market capitalization club, and it most likely won't stop there.
What makes Microsoft's growth story even more compelling is its history of stock splits. Although stock splits don't fundamentally change the value of a company, they'll increase the number of shares you own. This share increase, combined with the rise in stock price over the years, would have made the current value of your initial Microsoft stock purchase significantly higher.
Microsoft's stock-split record
Stock splits were common in the 1990s, and Microsoft wasn't shy about jumping on the trend. It issued seven stock splits back then. But since then, they've tapered off, with Microsoft executing its last stock split in February 2003.
| Payable date | Split Type |
|---|---|
| Sept. 18, 1987 | 2-for-1 |
| April 12, 1990 | 2-for-1 |
| June 26, 1991 | 3-for-2 |
| June 12, 1992 | 3-for-2 |
| May 20, 1994 | 2-for-1 |
| Dec. 6, 1996 | 2-for-1 |
| Feb. 20, 1998 | 2-for-1 |
| March 26, 1999 | 2-for-1 |
| Feb. 14, 2003 | 2-for-1 |
Source: Microsoft. Chart by author.
If you owned one share of Microsoft at the time of its IPO in March 1986, you'd now hold 288 shares after the nine stock splits. That means your shares would be worth over $115,000 as of Aug. 6, not including dividends.
With Microsoft's stock price hovering around $400 and its heavy influence on the Dow Jones Industrial Average, I wouldn't be surprised if the company finally stopped its stock-split drought soon.
