Prediction: This Will Be the Most Prominent Stock Split of 2025

There's been a resurgence in the popularity of stock splits in recent years. The practice was fairly common during the late 1990s before fading into obscurity, only to come roaring back to life over the past several years. Companies will normally embark on a stock split as the result of years of robust growth and consistently strong financial results that drive a soaring stock price.This year is littered with prime examples:There's a good reason investors are so enamored with stock splits. It turns out that the strong business performance that preceded the stock split tends to continue, fueling additional gains. Research suggests that companies that conduct a stock split return 25%, on average, in the year following the announcement, more than double the 12% average return for the S&P 500 (SNPINDEX: ^GSPC), according to Bank of America analyst Jared Woodard.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool