If You Bought 1 Share of Coca-Cola at Its IPO, Here’s How Many Shares You Would Own Now – MASHAHER

ISLAM GAMAL19 August 2024Last Update :
If You Bought 1 Share of Coca-Cola at Its IPO, Here’s How Many Shares You Would Own Now – MASHAHER


Coca-Cola (NYSE: KO) went public in 1919, and since that time, the stock has split quite a few times. So, let’s take a look at the history and what it would mean for an original Coca-Cola shareholder.

Before we can determine how many shares you’d have if you had bought one share at Coca-Cola’s initial public offering (IPO), we need to take a look at its stock split history. There has been a total of 11 stock splits throughout the company’s 105-year publicly traded history.

Year

Split

Total Shares

1927

1-for-1 (stock dividend)

2

1935

4-for-1

8

1960

3-for-1

24

1965

2-for-1

48

1968

2-for-1

96

1977

2-for-1

192

1986

3-for-1

576

1990

2-for-1

1,152

1992

2-for-1

2,304

1996

2-for-1

4,608

2012

2-for-1

9,216

Data source: Coca-Cola.

As you can see, this split history would have led to a massive number of shares over time. One share of Coca-Cola purchased at the time of the 1919 IPO would have multiplied to a staggering 9,216 shares today.

When Coca-Cola went public in 1919, its shares were initially priced at $40. As of this writing, one share of Coca-Cola trades for about $69. But you’d own 9,216 of them. That initial $40 investment would be worth $635,904 today. Not only that, but you’d be bringing in almost $17,900 in dividend income every year.

A great example of long-term compounding

Of course, it’s fairly certain that nobody who is reading this actually bought a share of Coca-Cola in 1919 (although some people may have inherited shares that were purchased then). But this is a great example of the long-term power of compound returns. Imagine being able to spend $40 today that will eventually turn into a massive nest egg and $18,000 annual income stream for your children or grandchildren.

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Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

If You Bought 1 Share of Coca-Cola at Its IPO, Here’s How Many Shares You Would Own Now was originally published by The Motley Fool


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