Stock splits are in vogue, again, and some of the biggest names in the stock market are looking to split their shares. After seeing a long period during which three-digit and even four-digit share prices became badges of honor rather than impediments to small investors, some massive moves, like the 20-for-1 stock splits that Amazon.com and Alphabet have done, are getting investors to pay attention to splits, once again.

Long-term investors know that the power of compounding can produce amazing returns over the long haul. One similar concept, though, gets largely ignored by most shareholders: A consistent track record of stock splits can indicate huge long-term returns, even when the share price seems modest. For the most impressive example of this, you only need to look at beverage pioneer Coca-Cola (NYSE: KO).

Coca-Cola stock began trading in 1919, and in just over a century, the soft-drink maker has done stock splits on a regular basis. It took eight years before Coca-Cola did its first 2-for-1 split, coming in the boom era of the 1920s. More noteworthy was Coca-Cola's 4-for-1 split in 1935 during the depths of the Great Depression, which serves as a reminder to investors that even during the worst of times from an economic standpoint, some businesses can remain stalwart stock holdings.

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Source Fool.com