In this case the dividend will be paid a week before the stock split. August 7 vs split Aug 14, 2014
Good point about the rates. Greenspan was also too late. The price was in a malaise for a little while when talk of tapering started but seems to have shrugged that off. My concern is that revenue/profit growth keeps pace with the price and yield. The yield is pretty low - I hope the export business is a boom to EPD.
2 for1 stock split...shares held times 2, stock price divided by 2, distribution amount divided by 2. This is a stock split not a stock dividend.
Don't worry... modern computers are fully capable of doing all the complicated math calculations to make sure you get your fair share of the distribution. My only concern is seeing the unit price go higher.
IMO, rising interest rates are almost as much a certainty as death and taxes. It's only a matter of when, not if. When the Greenspan Fed raised rates they did it way too fast and way too much. I suspect the present Fed Board has learned a lesson from that debacle. We'll see.
You're all right... a split does absolutely nothing for the overall value of the partnership. Berkshire Hathaway has proven that it's not necessary to split the price for a stock to go up. GOOG, PCLN, AMZN, and a host of other companies have come to the same conclusion. The demise of the odd-lot price differential and commission penalties, there seems to be little reason for splits. It matters very little whether I own 1000 shares at 80 or 2000 shares at 40. At the end of the day, all I really care about is seeing the price go up.
You are wrong. Never trust Yahoo Finance info. Look at the EPD website where they show that in fact the distribution was adjusted for the 2-1 stock split back in 2002.
Take a look at the dividend history post-split in May of 2002. The dividend remained the same for the split shares and WAS NOT REDUCED. Also, when MO split into three companies, the dividend was not reduced (I know first hand because I am a long-time MO shareholder.) I'm not sure whether the EPD dividend will be halved when the stock splits. Again, look at the dividend history on Yahoo Finance for this stock. It did not get reduced last time it split in May' 02. Thoughts?
Then why not split 4-1and make it even MORE affordable for the small investor? I consider my self a small investor since we own less than 1 million in stock, spread over 22 companies, and I bought this stock when it was in the fifties.
not so, take a look at SXL, PAA, hasn't moved much since the split. I have found that instead of buying XXX amount of shares, I just reduce the quantity in half, basically only with what I can afford. Wish they didn't do the split. Great company and will buy more.
Sentiment: Strong Buy
Definitely more affordable for the small time, younger investor just starting to build an income portfolio & the perfect time for those of us who have been waiting for this opportunity to buy in.
Yes, the stock split does not change the value of the shares/company; however, EPD is doing what countless hundreds of other companies over the years/decades have done when their stocks have risen to record-high levels as EPD's shares have. And, one of the leading reasons, if not the leading reason for doing so, is to make the shares more accessible/attractive to individual investors, who comprise a significant percentage of EPD's shareholder base.
I know this is the dreaded topic where much has been said but this will slow things.... the argument was made that EPD wanted to increase in full cent increments.... that's history... it moves to a half cent
I would have wanted them to increase the quarterly dist to 1.125 cents (1 1/8 cents) but that will be out the window too because they would never move to a .55625 cent rate (9/16s cent)
I guess there is still a potential for say 1/2 cent special distributions but the split is a disappointment for me
We are getting closer and closer to the Fed raising rates.... mgmt. has said they wanted dry powder for that day.... it just looks like it will be tougher to accelerate at that time....
I would rather a plodding of incremental cents as opposed to specials but given the scale moving forward specials are about all we will ever have a chance for and that will result in a slowing of the rate over time
and on the bright side.... every time I am critical.... the unit price makes a significant move to the upside