1 Stock Split Stock I Want to Buy Before 2022 Ends
Stock splits don't create any real value for shareholders. However, they do have some tangible benefits. For example, they can make a company's stock more accessible to investors, since it will have a lower post-split trading price.
That's certainly the case for cybersecurity giant Palo Alto Networks (NASDAQ: PANW). Shares went from a pre-split price of more than $500 a share to a post-split price recently in the $170s following its 3-for-1 stock split a few months ago. That's a much more accessible level for my strategy of investing dividends into growth stocks. Given the projected dividend payments I should receive this month, I'll have enough cash to buy another share of Palo Alto before the year ends.
Palo Alto Networks has many characteristics I like to see in a growth-focused investment. For starters, it's growing at an above-average rate. The company recently reported its fiscal first quarter results, delivering 25% year-over-year revenue growth. Revenue reached $1.56 billion, slightly above the top end of its guidance range. It also delivered its second straight quarter of GAAP profits after four consecutive years of posting losses. Meanwhile, operating income jumped 44% to $322 million. The company continues to expand its margins as it scales.
Source Fool.com
