When a company such as DSE conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the DSE split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into DSE shares, starting with a $10,000 purchase of DSE, presented on a split-history-adjusted basis factoring in the complete DSE split history.

About DSE

Duff & Phelps Select MLP and Midstream Energy Fund is a closed-end management investment company. The Fund's investment objective is to seek total return resulting from a combination of tax-deferred distributions and capital appreciation. The Fund invests at least 80% of its Managed Assets in energy master limited partnerships (MLPs) and midstream energy companies that are not organized as MLPs. The Fund may invest up to 20% of its Managed Assets in securities of issuers either: in the energy sector and that are not midstream energy companies; or that produce products for the use of companies in the energy sector such as sand miners, certain chemical companies, and coking coal processors. According to our DSE split history records, DSE has had 1 split.

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