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Unstoppable Stock-Split Stock to Buy Hand Over Fist in 2025

Wesley ParkWednesday, Nov 27, 2024 5:26 am ET
4min read
As we approach the dawn of a new year, investors are on the hunt for the next big thing. While some may be chasing the latest tech trends or betting on up-and-coming industries, there's a tried-and-true strategy that has consistently delivered impressive returns: stock splits. These corporate actions, where a company increases or decreases its number of outstanding shares, can ignite a surge in investor interest and drive stock prices higher. With that in mind, let's take a closer look at one unstoppable stock-split stock that is poised to make waves in 2025.



One company that has consistently demonstrated a strong competitive moat and a history of stock splits is Walmart (WMT). The retail giant recently announced a 3-for-1 stock split, further solidifying its position as a go-to investment for long-term growth. Walmart's extensive store network, supply chain efficiency, and cost leadership have made it a formidable competitor in the retail space, and its commitment to innovation and technology has only strengthened its position.

But Walmart isn't the only company that has benefited from stock splits. Tech giants like Microsoft (MSFT) and Apple (AAPL) have both seen impressive growth and share price appreciation following stock splits. Microsoft, for instance, recently completed a 7-for-1 stock split, which has helped to drive its share price to all-time highs. Similarly, Apple's 4-for-1 stock split in 2020 has been followed by a significant increase in its share price.

ADXN, ALEC, AMBA, ANF, ARWR...Market Cap, Turnover Rate...


So, what makes a stock-split stock a compelling investment? For one, stock splits can signal management's confidence in future growth prospects. By increasing the number of outstanding shares, companies can make their stock more affordable for individual investors, potentially drawing in a larger pool of buyers and increasing demand. This increased demand can lead to a temporary surge in the stock price, as more investors are clamoring to buy shares.

Additionally, stock splits can help to attract new retail investors, increasing liquidity and market participation. Lower-priced shares may be more appealing to investors using certain trading platforms or strategies that have price-based filters, such as robo-advisors with minimum investment requirements. This increased liquidity can further drive up the stock price, benefiting both existing and new investors.

But perhaps the most compelling reason to invest in stock-split stocks is their track record of strong earnings growth and dividend payouts. Companies that have a history of stock splits tend to perform well over time, returning value to shareholders through consistent earnings growth and dividend increases. For instance, Microsoft's earnings per share (EPS) have grown at a compound annual growth rate (CAGR) of 18% over the past decade, while Apple's EPS have grown at a CAGR of 16% during the same period. Both companies have also consistently raised their dividends, with Microsoft's dividend increasing at a CAGR of 15% and Apple's at 10% over the past decade.

In conclusion, stock-split stocks offer a compelling investment opportunity for those looking to grow their wealth over the long term. By signaling management's confidence in future growth prospects, attracting new retail investors, and demonstrating a history of strong earnings growth and dividend payouts, these companies have consistently delivered impressive returns. As we approach 2025, investors would be wise to keep an eye on the next big stock-split stock to buy hand over fist.
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Local-Store-491
11/27
$MSFT is committed to growing its business by continuously acquiring new technologies and companies, rather than selling any of its assets.
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DisabledScientist
11/27
If you're a Microsoft 365 subscriber, you might have experienced some extra frustration this Monday. Early in the morning, the software team announced it was investigating a problem affecting Exchange Online and Microsoft Teams users. These Microsoft 365 applications, such as Outlook and Teams, are essential tools for many workplaces worldwide. Later in the day, they updated that they were "experiencing delays" in resolving the issues. #BringBackThe80s!
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lem_lel
11/27
$WMT to AAPL shareholders, any bears out there want to keep harping on tariffs so it can keep climbing higher? 🤣🤣
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EmergencyWitness7
11/27
$WMT The premarket today is a repeat of Monday's session. It's best to secure your profits.
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ImplementEither7716
11/27
🚀 GOOGL is currently in the midst of antitrust scrutiny! Despite imminent regulation, has it weakened Google's formidable position? 🤔 Recent court rulings suggest Google has been abusing its search engine dominance. However, with GOOGL up by 22% YTD, the market seems unfazed. 🤷 Considering Microsoft's past antitrust ordeal, could a settlement also lead to a significant boost in Google's growth trajectory? 🤖 As AI battles intensify, Google swiftly innovates, countering emerging AI platforms with its advanced upgrades. 🔥 In the midst of this antitrust controversy, Google remains adaptable. With a $207.9 average price target, investors might overlook the legal commotion. 📈 In a world where tech giants intertwine with politics, is it plausible that GOOGL's downfall could be averted altogether? 🤷Watch this space closely! 🌐 #TechStocks #MarketWatch
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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