Reynolds American Splits 2-for-1

Here’s a quick reminder that Reynolds American (RAI) split 2-for-1 this morning. The price has fallen in half but there are now twice as many shares.

The dividend split as well, and it was just increased. The pre-split dividend was 90 cents per share. The next dividend, post-split, will be 49 cents per share and it’s payable on January 3rd to shareholders of record as of December 10th.

At the stock’s current price, the $1.96 annual dividend works out to a little over 6% per year.

For tracking purposes, I assume the Buy List is a $1 million portfolio that’s equally divided into 20 stocks at the beginning of each year.

The original RAI position as of midnight on December 31, 2009 was 943.9305 shares at $52.97. I’ve now adjusted that to 1887.861 shares at $26.485.

Posted by on November 16th, 2010 at 11:03 am


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