Stock Splits 60% Below the 1999 LevelsĀ 

Despite the current stock market boom and many hitting new highs, unlike in other recent bull markets, companies have been reluctant to split their stock. Only 37 companies in the Standard & Poor's 500 index split their stock last year, compared to 91 in 1999. 

The current stock split pace is almost 40% below the average number of yearly splits since 1979 and 60% below the 91 that split in 1999, according to S&P. 

Additionally, 228 companies in the DJ Wilshire 5000 split last year, down 16% from 2005 and 40% from 1999, according to Wilshire Atlas.

The lack of splits have pushed the average share prices higher. The average share price of stock in the DJ Wilshire 5000 hit $46.63 last year, a 12% jump from 2005 and the highest since at least 1990. Now, 51 stocks trade for $100 a share or higher, nearly triple the number that did five years ago.

Google at $500 and Berkshire Hathaway at $100,000 are certainly giving higher share price a new status of honor. 

Data also show that splits have no impact on performance. Stocks that split from 1988 to 2005 had nearly identical 12-month performance to those that didn't, according to Zacks Investment Research.

Reference: Why are companies shying away from stock splits? - USA Today

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