Why Aren’t Stocks Splitting As Often Today?



A listener has dividend reinvestment plans with three stocks and his portfolio is worth about $210,000. He calls the show and wants to know why these stocks are not splitting as often as they once did. He liked to buy more shares at a lower price after the split. Listen to Ric Edelman explain why stock splits are gimmicks and companies aren’t offering them as often as they once did.

Investing strategies, such as asset allocation, diversification, or rebalancing, do not assure or guarantee better performance and cannot eliminate the risk of investment losses. There are no guarantees that a portfolio employing these or any other strategy will outperform a portfolio that does not engage in such strategies. Funds and ETFs are subject to risk, including loss of principal. All investments have inherent risks. There can be no assurance that the investment strategy proposed will obtain its goal. Past performance does not guarantee future results.