Apple announces four-for-one stock split

Posted:
in AAPL Investors
Six years after Apple had its last split, the company has announced that a four-to-one stock split will happen on August 24.




Apple's Board of Directors has approved a four-for-one stock split, "to make the stock more accessible to a broader base of investors" says the company. Each Apple shareholder of record at the close of business on August 24, 2020 will receive three additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on August 31, 2020.

This is on top of an earnings report for a coronavirus-impacted quarter that is well above Wall Street's expectations.

"Our June quarter performance was strong evidence of Apple's ability to innovate and execute during challenging times," said Luca Maestri, Apple's CFO. "The record business results drove our active installed base of devices to an all-time high in all of our geographic segments and all major product categories. We grew EPS by 18 percent and generated operating cash flow of $16.3 billion during the quarter, a June quarter record for both metrics."

Apple also has declared a cash dividend of $0.82 per share of the Company's common stock. The dividend is payable on August 13, 2020 to shareholders of record as of the close of business on August 10, 2020.

Apple's last split was announced on April 23, 2014. That split was a 7-for-1 split, and a big buyback program was announced at the same time.
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Comments

  • Reply 1 of 27
    MacProMacPro Posts: 19,426member
    Just wow, to everything!
    bshankSpamSandwichlolliverjony0
  • Reply 2 of 27
    Unbelievable! This company is bulletproof right now. 
    bshank
  • Reply 3 of 27
    ...doing well during a pandemic...

    WW3 could start and Apple would announce record sales. I guess when you're hot, you're hot. 

    Splendid call on leaving Intel. 

    Microsoft wants to stay close since Apple Silicon Macs will help Office sales and may be a great new gaming platform.

    Apple TV+ doing better than expected.

    Wow...
    bshankfastasleeplolliverjony0
  • Reply 4 of 27
    pslicepslice Posts: 130member
    We are excited about this split. We started buying with the last split. Thanks, Apple!
  • Reply 5 of 27
    MacProMacPro Posts: 19,426member
    The grandson we never hear from and for whom we set up an educational IRA which has 100% AAPL in it as we did for all the grandkids, just left a message...  he needs to talk!  'He heard he has 4 x as much Apple stock now.'  ROFL.
    larryjw
  • Reply 6 of 27
    MacProMacPro Posts: 19,426member
    pslice said:
    We are excited about this split. We started buying with the last split. Thanks, Apple!
    You do realize it makes zero difference to anything not to mention you can buy fractions of shares?  It is 100% a psychological move that apparently works!  ;)
    SpamSandwich
  • Reply 7 of 27
    if you buy apple tommorrow , are you still eligible for the split on your shares?
  • Reply 8 of 27
    dr. xdr. x Posts: 280member
    if you buy apple tommorrow , are you still eligible for the split on your shares?

    I believe so, as long as it happens before close of business on August 24, 2020.

    Proud Apple share holder. I'm considering purchasing some more.
    edited July 2020
  • Reply 9 of 27
    Mike WuertheleMike Wuerthele Posts: 6,316administrator
    if you buy apple tommorrow , are you still eligible for the split on your shares?
    Yes.
    lolliver
  • Reply 10 of 27
    fastasleepfastasleep Posts: 5,836member
    Crazy, I missed that part in the call. Was just looking at after-hours (~$408 last I checked) which is getting close to where I bought most of mine (along with some in the 500s and last just above 600) in pre 7-way split. Amazing.
    edited July 2020
  • Reply 11 of 27
    carnegiecarnegie Posts: 962member
    So moves in Apple shares will have less impact on the DJIA going forward. That index isn't cap-weighted, it's just based on share prices. So if the share price of one of the Dow 30 companies moves $10, that move has the same effect on the index regardless of whether the share price was $50 or $400 before. A 10% move in a company with a share price of $400 moves the index 8 times as many points as a 10% move in a company with a share price of $50, even if the market cap of the $50 share price stock is 10 times greater than that of the $400 share price stock.

    The DJIA divisor will be adjusted to account for this split, and then going forward a $10 move in Apple will have the same effect that a $10 move today would.

    Apple's share price was getting pretty high for a Dow 30 company.
    edited July 2020 randominternetpersonFileMakerFeller
  • Reply 12 of 27
    SpamSandwichSpamSandwich Posts: 33,408member
    Would be an ideal time to release a “revolutionary” new Apple product very soon.
  • Reply 13 of 27
    dr. xdr. x Posts: 280member
    Would be an ideal time to release a “revolutionary” new Apple product very soon.

    Yes, this fall as they said the first ARM MacBook will be released. Imagine an ARM MacBook Pro with Face ID that would be pretty sweet. I'm sure they have more in the pipeline.

    Mac FaceID was found in one of the betas of Big Sur so it's coming, just a matter of when.
    lolliverSpamSandwichBeats
  • Reply 14 of 27
    iOS_Guy80iOS_Guy80 Posts: 551member
    Unbelievable! This company is bulletproof right now. 
    Glad I bought a few more shares this morning.
  • Reply 15 of 27
    iOS_Guy80iOS_Guy80 Posts: 551member
    if you buy apple tommorrow , are you still eligible for the split on your shares?
    Yes.
    Buy your shares by August 24th and before the market closes.
  • Reply 16 of 27
    MacProMacPro Posts: 19,426member
    if you buy apple tommorrow , are you still eligible for the split on your shares?
       Buy a share prior to the split you'd have four after the split, buy four after the split you still have four.  Why would it matter when you buy them?
    edited July 2020 SpamSandwichfastasleep
  • Reply 17 of 27
    klink172klink172 Posts: 14member
    MacPro said:
    pslice said:
    We are excited about this split. We started buying with the last split. Thanks, Apple!
    You do realize it makes zero difference to anything not to mention you can buy fractions of shares?  It is 100% a psychological move that apparently works!  ;)
    Whatever gets people to buy more and up the price. Grandma and grandpa will jump in and the stock will move off it’s split price so fast Apple will be splitting again real soon. 
  • Reply 18 of 27
    maestro64maestro64 Posts: 5,022member
    Why split when they been trying to remove shared from the market, just just undid what Apple has been doing for the last 5 yrs. Ask yourself why Amazon, Tesla and over companies still run by the original owner. This just make the stock worth less since any one can own it, the last time they did this the stock did not move much until Apple started to but its stock back. This time they are not sitting piles of cash.
  • Reply 19 of 27
    SpamSandwichSpamSandwich Posts: 33,408member
    maestro64 said:
    Why split when they been trying to remove shared from the market, just just undid what Apple has been doing for the last 5 yrs. Ask yourself why Amazon, Tesla and over companies still run by the original owner. This just make the stock worth less since any one can own it, the last time they did this the stock did not move much until Apple started to but its stock back. This time they are not sitting piles of cash.
    It will take the same amount of money to buy back 4 shares soon as it has taken to buy 1. They’ll just be buying back 4 times more.
    flyingdp
  • Reply 20 of 27
    crowleycrowley Posts: 9,088member
    maestro64 said:
    Why split when they been trying to remove shared from the market, just just undid what Apple has been doing for the last 5 yrs. 
    Apple don't care how many shares are out there, why would they?  They care about increasing the value of holding shares to the shareholder, and a contributor to value is the tradeability of shares.  A split reduces the book price of a single share, which increases tradeability. 

    They can continue buying back shares, only now they'll back 4 shares for every 1 pre-split.  The number of shares doesn't matter, the value does.
    flyingdpronnFileMakerFeller
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