Coca-Cola (KO -0.20%) has been around for 105 years and is one of the most recognizable brands in the world. Even legendary investor Warren Buffett is a fan, with 400 million shares held in his Berkshire Hathaway portfolio -- worth over $25 billion today.
If you've ever wanted to follow in Buffett's footsteps, you've probably thought about snagging shares of this iconic beverage giant. But what if you'd been lucky enough to invest at Coca-Cola's initial public offering (IPO)? Let's break down how many shares you'd be sipping on today.
On Sept. 5, 1919, Coca-Cola debuted as a public company, with shares priced at $40 per share at its IPO. Since then, the beverage giant has executed 11 stock splits.
Here's a snapshot of Coca-Cola's stock-split timeline.
| Record Date | Split Type | Total Shares |
|---|---|---|
| April 25, 1927 | 1-for-1 (stock dividend) | 2 |
| Nov. 15, 1935 | 4-for-1 | 8 |
| Jan. 22, 1960 | 3-for-1 | 24 |
| Jan. 22, 1965 | 2-for-1 | 48 |
| May 13, 1968 | 2-for-1 | 96 |
| May 9, 1977 | 2-for-1 | 192 |
| June 16, 1986 | 3-for-1 | 576 |
| May 1, 1990 | 2-for-1 | 1,152 |
| May 1, 1992 | 2-for-1 | 2,304 |
| May 1, 1996 | 2-for-1 | 4,608 |
| July 27, 2012 | 2-for-1 | 9,216 |
Data source: Coca-Cola. Chart by author.
There's always buzz around stock splits, but here's the deal: They're more of a cosmetic makeover. A stock split won't make you rich on its own. You'll just end up with more shares at a lower price per share. For example, in a 2-for-1 split, one $200 share becomes two $100 shares.
If you were an original Coca-Cola shareholder, your one share would have bubbled up to 9,216 shares over the years. As of this writing, with Coca-Cola trading at about $64 per share, your investment would be worth $589,824.
And the cherry on top? You'd be raking in over $17,000 a year in dividend income.
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