|
Video: What is a Stock Split?
|
|
Ambev is engaged in the production and sale of beer, draft beer, soft drinks, other non-alcoholic beverages, malt and food in general. Co. has four segments: Brazil, which includes the beer sales division and the NAB sales division; Central America and the Caribbean, which includes its direct operations in the Dominican Republic, Saint Vincent, Antigua, Dominica, Cuba, Guatemala (which also serves El Salvador, Honduras and Nicaragua), Barbados and Panama; Latin America South, which includes its operations in Argentina, Bolivia, Paraguay, Uruguay and Chile; and Canada, represented by Labatt's operations, which includes domestic sales in Canada and some exports to the U.S. market. According to our ABEV split history records, Ambev SA has had 2 splits. | |
|
Ambev SA (ABEV) has 2 splits in our ABEV split history database. The first split for ABEV took place on November 11, 2013. This was a 5 for 1 split, meaning for each share of ABEV owned pre-split, the shareholder now owned 5 shares. For example, a 1000 share position pre-split, became a 5000 share position following the split. ABEV's second split took place on October 23, 2000.
When a company such as Ambev SA splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business.
Looking at the ABEV split history from start to finish, an original position size of 1000 shares would have turned into 5000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Ambev SA shares, starting with a $10,000 purchase of ABEV, presented on a split-history-adjusted basis factoring in the complete ABEV split history.
Growth of $10,000.00
With Dividends Reinvested
|
Start date: |
03/31/2014 |
|
End date: |
03/27/2024 |
|
Start price/share: |
$7.41 |
|
End price/share: |
$2.48 |
|
Starting shares: |
1,349.53 |
|
Ending shares: |
1,949.31 |
|
Dividends reinvested/share: |
$1.56 |
|
Total return: |
-51.66% |
|
Average Annual Total Return: |
-7.01% |
|
Starting investment: |
$10,000.00 |
|
Ending investment: |
$4,835.58 |
|
Years: |
10.00 |
|
|
Growth of $10,000.00
Without Dividends Reinvested
|
Start date: |
03/31/2014 |
|
End date: |
03/27/2024 |
|
Start price/share: |
$7.41 |
|
End price/share: |
$2.48 |
|
Dividends collected/share: |
$1.56 |
|
Total return: |
-45.44% |
|
Average Annual Total Return: |
-5.88% |
|
Starting investment: |
$10,000.00 |
|
Ending investment: |
$5,456.21 |
|
Years: |
10.00 |
|
|
|
Date |
Ratio |
11/11/2013 | 5 for 1 | 10/23/2000 | 1 for 1 |
|
|