When a company such as Diamond Offshore Drilling splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business.

Looking at the DO split history from start to finish, an original position size of 1000 shares would have turned into 2000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Diamond Offshore Drilling shares, starting with a $10,000 purchase of DO, presented on a split-history-adjusted basis factoring in the complete DO split history.

About Diamond Offshore Drilling

Diamond Offshore Drilling provides contract drilling services to the energy industry with a fleet of offshore drilling rigs. Co.'s fleet enables it to provide services in the floater market on a worldwide basis. The principal markets for Co.'s offshore contract drilling services are: the Gulf of Mexico, including the U.S., and Mexico; Canada; South America, principally offshore Brazil, and Trinidad and Tobago; Australia and Southeast Asia, including Malaysia, Myanmar and Vietnam; Europe, principally offshore the U.K.; East and West Africa; and the Mediterranean. Co.'s contracts to provide offshore drilling services vary in their terms and provisions. According to our DO split history records, Diamond Offshore Drilling has had 1 split.

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