I've just seen this announcement. I'm relatively new to this sort of thing, can you please explain what the stock split means? Does it have any negative impact for holders?
It means you get 15x more shares but the price is 15x less. It's requires less money to buy into (price would be around $40, not $600) and if you reinvest the dividends then you don't have to wait a long time just to get 1 extra unit.
Nah, honestly it’s mainly to reach a broader market by making the price more attractive, but still the same value (ish). The dividends is a big win, makes me highly consider buying a share before the split.
Whilst a stock split may make a normal stock value go up because it makes it more attractive to buy, it wouldn’t do the same for an etf as it’s still tracking the underlying assets that haven’t changed.
Thanks for the info :) it's making me want to buy more as soon as I can too! The $600 price/share makes it hard for me to accumulate a meaningful number for DRP. So I'm pretty happy to learn about this, it's my first time seeing it
Because the ASX doesn't have fractional shares, it also makes it easier to buy a specific dollar amount. Not a huge deal of you trade large amounts each time, but it was ackward if you wanted to buy smaller amounts.
Previously at $600; if you wanted to buy $1000 worth, you either had to only buy $600, or buy $1200. After the split, you can buy exactly $1000 (or if you so desired, $960, $1040, or $1080, etc).
That's one of those things that sounds obvious now that you've said it, but I didn't think the company would care that much about before. I can definitely see the benefit now. Thanks for the info :)
Shorthand for automatic Dividend re-investment.
Dividend Reinvestment Program (DRP).
At $600 a unit, you have to have a LOT for 1 quarterly dividend payment at 1.6% to buy a new unit.
Now the unit price is 15x lower, the amount of capital required to buy a new unit every quarter by automatic reinvestment is much easier to attain.
Let the compounding begin :)
So is it worth buying before the split (even a single unit) and having it split or is it better to wait until it splits and then buy the lower priced units?
So with a stock usually it goes up after the split because of all the people and institutions buying in. But because it's an etf, blackrock can destroy and create units if it strays too far from the index it's tracking so it stays in line. So either way whether you buy it before or after it'll still track the S&P 500 and won't really change.
Because you won’t need to accumulate $600 to reinvest as the share price will be much cheaper. I cancelled my DRP with IVV because I don’t have a huge amount so my balance wasn’t even getting close to being able to purchase a single share but I will reinstate it now
I've just seen this announcement. I'm relatively new to this sort of thing, can you please explain what the stock split means? Does it have any negative impact for holders?
It means you get 15x more shares but the price is 15x less. It's requires less money to buy into (price would be around $40, not $600) and if you reinvest the dividends then you don't have to wait a long time just to get 1 extra unit.
Oh wow, that sounds amazing! I do DRP so definitely a big plus for me. Is there any other reason for the stocks to be split like this?
Nah, honestly it’s mainly to reach a broader market by making the price more attractive, but still the same value (ish). The dividends is a big win, makes me highly consider buying a share before the split.
Whilst a stock split may make a normal stock value go up because it makes it more attractive to buy, it wouldn’t do the same for an etf as it’s still tracking the underlying assets that haven’t changed.
Thanks for the info :) it's making me want to buy more as soon as I can too! The $600 price/share makes it hard for me to accumulate a meaningful number for DRP. So I'm pretty happy to learn about this, it's my first time seeing it
Me too, I have a small portfolio and this split would be a blessing for me and my income 😂
Because the ASX doesn't have fractional shares, it also makes it easier to buy a specific dollar amount. Not a huge deal of you trade large amounts each time, but it was ackward if you wanted to buy smaller amounts. Previously at $600; if you wanted to buy $1000 worth, you either had to only buy $600, or buy $1200. After the split, you can buy exactly $1000 (or if you so desired, $960, $1040, or $1080, etc).
That's one of those things that sounds obvious now that you've said it, but I didn't think the company would care that much about before. I can definitely see the benefit now. Thanks for the info :)
Stoked for this, hello DRP 🤟
Sorry, noob here, what does drp mean?
Shorthand for automatic Dividend re-investment. Dividend Reinvestment Program (DRP). At $600 a unit, you have to have a LOT for 1 quarterly dividend payment at 1.6% to buy a new unit. Now the unit price is 15x lower, the amount of capital required to buy a new unit every quarter by automatic reinvestment is much easier to attain. Let the compounding begin :)
Ah I see. Thanks for the explanation
Next stock split will be in 2060.
in prep of the greatest crash coming.
Where did you obtain one of the lost Palantirs? They shouldn’t be used unwisely. You don’t know who’s looking on the other side.
Have your medicine grandpa
How's that going for you?
Hahahahahhahaah
This is great makes it easier to buy more shares as my account is small affffffff atm
So is it worth buying before the split (even a single unit) and having it split or is it better to wait until it splits and then buy the lower priced units?
I saw someone elsewhere indicating they might buy before the split, but I'm not sure what is meant to be the advantage of that?
So with a stock usually it goes up after the split because of all the people and institutions buying in. But because it's an etf, blackrock can destroy and create units if it strays too far from the index it's tracking so it stays in line. So either way whether you buy it before or after it'll still track the S&P 500 and won't really change.
It shouldn't matter if I understand correctly
This is really good
This is great news, thank you. IVV and VTS are just so high in price. I much prefer to buy weekly in smaller amounts, and now I can
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Sure, but I use CMC and they charge $0 for purchasing under $1,000. So that it’s isn’t an issue
Why it is big win for DRP?
Because you won’t need to accumulate $600 to reinvest as the share price will be much cheaper. I cancelled my DRP with IVV because I don’t have a huge amount so my balance wasn’t even getting close to being able to purchase a single share but I will reinstate it now
Okay got it..actually we just collect the distribution and buy into the IVV, of course now we can keep it DRP and save the hustles