Although the company itself hasn't hinted that one might be on the near-term radar, with shares currently priced at almost $1,000 apiece, investors are certainly talking about the prospect of a stock split from club-membership warehouse retailer Costco Wholesale (COST -2.45%).
And this begs the question: When was the last time Costco split its stock, and how far has it come in the meantime?
As for the "when," it's been a while. It was all the way back in January 2000, in fact, when the retailer initiated a 2-for-1 split of its stock, cutting its share price at the time of $98.12 in half, to $49.06. It's clearly grown a great deal since then. Indeed, had you made a $1,000 investment in this name right before this split, that holding would be worth just over $19,700 today. Nice!
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Such gains, of course, have nothing to do with stock splits ... or lack thereof. Splitting a stock is merely tantamount to exchanging a $20 bill for two $10 bills; the actual amount of money you're holding hasn't actually changed, just as the relative size of your stake in a company that your shares represent doesn't change due to a split. Stock splits are largely undertaken to accommodate investors who want to fine-tune the size of their positions in a particular equity.
NASDAQ: COST
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Still, there's no denying the short-lived bullishness that often results from the market's buzz about an expected -- and then enacted -- stock split. It wouldn't necessarily be wrong to keep your eyes and ears open for one from Costco, even if it's not a reason in and of itself to own the stock.
That being said, there's certainly good reason to own a stake in Costco, whether or not the company splits its stock anytime soon.
