Grt2bOutdoors wrote:I actually own this from the days it was known as Philadelphia Suburban. Now, if my recollection is correct - the stock historically traded in the $17-$25 range for a good period of time, and with that 5% discount assuming you Drip'd the dividends, that was an average price of low 20's. So, it makes perfect sense to keep the stock price in that range by splitting the stock and encouraging the little guy, including many of their water utility customers to be direct owners of it. N.D. has done a pretty good job there over the years, don't you think? BTW, many of the splits have been 4 for 3 and 5 for 4 - so it's inline with the current proposal to split it.
I think that is the reason.
Stock splits are, as far as I know, simply to keep the price within an affordable range. The company I worked for had an employee stock purchase plan funded by paycheck withholdings and company matches. At one point the stock was so expensive that many employees could never accumulate the price of a single share of stock! Or at least it took a long time to do so. Even at a "normal" increase measured in percent, the dollar amount of the increase kept running away from the amount accumulated.
The company had a stock split (one of many) and everyone was happy.
I have a strong moral sense - by my standards. | -- Rex Stout