Why did Apple announce a 4-for-1 stock split?

(Bloomberg) -- Apple Inc. announced a 4-for-1 stock split aftershares of the iPhone maker surged more than 80% in the past year. Shareholders at the close of trading on Aug. 24 will receive three additional shares for each one they currently own. Post-split trading will begin Aug. 31, Apple said in a statement on Thursday.

Is Apple's stock split a good idea?

With all the hype about Apple's stock split, it'll be good to get the mechanics over with. Then, investors will be able to get back to paying more attention to Apple's fundamental growth prospects in evaluating what the next move is for the tech stock. Dan Caplinger owns shares of Apple. The Motley Fool owns shares of and recommends Apple.

When did Apple split?

This is the fifth stock split since Apple went public in 1980. The last split was in2014. The company previously did splits in 1987, 2000 and 2005. The 2014 move paved the way for Apple to be added to the Dow Jones Industrial Average, which due to its configuration tends to eschew high-priced shares.

How good was Apple's performance after a 2 for 1 split?

Performance in the year after the split was respectable, too. After another 2-for-1 split in 2005, Apple divided its last two splits by a much greater amount in 2014 and 2020. Data source: Apple and YCharts.