On Dec 10, Mastercard (MA) announced it would split its $763 a share stock 10-for-1. It also announced it would increase its dividend 83% and would initiate a $3.5 billion share repurchase program.
Investors cheered the announcement, pushing the shares up 4.2% the next trading day.
Some investors argue that a high priced stock doesn’t perform as well as one under $100 because fewer investors have the firepower to buy it.
But that wasn’t the case with Mastercard. Before the split was announced, Mastercard shares were up 48.7% on the year.
That also doesn’t appear to be a problem for Priceline. Its shares are up 92.2% on the year. It also continued to rise well after it passed the golden $1000 level on Sep 18.
Are you a fan of stock splits?
Should Priceline be next to split its shares?