HEICO Announces 5-for-4 Stock Split

They told us a split was coming and here it is. This morning, HEICO (HEI) announced a 5-for-4 stock split. This means that shareholders will get 25% more shares while the stock price will drop by 20%.

Considering the reinvestment of cash dividends, and the impact of prior stock splits and stock dividends, a $100,000 investment in HEICO shares in 1990 has become worth approximately $18.7 million today, representing a compound annual growth rate of 22%. Additionally, in December 2016, we increased our semi-annual cash dividend by 13%, which was paid on January 18, 2017 and was HEICO’s 77th consecutive semi-annual cash dividend since 1979.”

I’m not sure why companies do small stock splits like 5-for-4 or 3-for-2. I suppose it makes for a good press release. I’d rather see them only do 2-for-1 or 3-for-1 splits. Ideally, splits should be for stock over $100 per share.

This will be HEICO’s 15th stock split since 1995. The split is payable on April 18 to shareholders of record as of April 7. Cash will be paid in lieu of fractional shares.

Posted by on March 20th, 2017 at 9:05 am

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