Meet Wall Street's Most Prolific Stock-Split Stock Throughout History -- a Company Whose Shares Have Gained Nearly 337,000% in 52 Years

Core Insights - The rise of artificial intelligence (AI) has created a significant $15.7 trillion addressable market, becoming a major trend on Wall Street since late 2022 [1] - Stock splits, particularly forward stock splits, have contributed to the S&P 500 reaching an all-time closing high earlier this year [2] Stock Splits Overview - A stock split is a method used by public companies to adjust their share price and outstanding share count without affecting market capitalization or operational performance [4] - There are two types of stock splits: forward splits, which lower share prices to make them more accessible to investors, and reverse splits, which are generally viewed negatively as they indicate struggling companies [5][6] Recent Trends in Stock Splits - In 2024, several prominent companies, including Nvidia and Broadcom, executed forward stock splits, reflecting a trend among successful businesses [7] - Fastenal has completed its ninth stock split since its IPO in 1987, showcasing a consistent strategy to engage investors [8] Historical Context of Stock Splits - Companies like Coca-Cola, Dollar General, and Home Depot have a long history of stock splits, primarily occurring between the 1970s and early 2000s, before the advent of online brokers that allowed fractional share purchases [9][10] - Home Depot completed all 13 of its stock splits between January 1982 and December 1999, while McDonald's and Dollar General last executed their forward splits in 1999 and 2000, respectively [10] Notable Company: Southwest Airlines - Southwest Airlines has achieved remarkable success with a return of nearly 337,000% since January 1973 and has conducted 14 stock splits since its IPO in June 1971 [14] - The airline has maintained profitability for 47 consecutive years until the COVID-19 pandemic, demonstrating resilience in a challenging industry [15] - Southwest's financial health is strong, with approximately $8.25 billion in cash compared to $6.7 billion in debt, allowing it to navigate economic downturns effectively [16] - The company's operational efficiency and customer loyalty program have contributed to its sustained success and reputation as a prolific stock-split stock [17][18]