2024-06-20 05:20:00 ET
Investors' enthusiasm for stock splits is a recent phenomenon and surprising. It's surprising because stocks represent ownership positions in real-world businesses. Dividing ownership into more pieces -- which is all a stock split does -- won't improve a business in any material way. Therefore, it's not one of the primary things that investors should focus on.
This disclaimer out of the way, I can't deny that investors are indeed excited about stock splits, and many companies are making stock-split announcements accordingly. In this article, I'll highlight three stocks from the S&P 500 that could very well split within the next year or so.
Costco Wholesale (NASDAQ: COST) , a warehouse-style retail chain with nearly 900 locations, makes most of its money from selling memberships . The company's members enjoy low prices and reward the company with loyalty.
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Stock-Split Watch: 3 S&P 500 Stocks That Look Ready to Split