"I-just-woke-up-from-a-30-year-coma-Before-that-I-bought-100-000-in-Sears-stock-You-re-my-accountant-What-s-the-good-news-and-bad-news
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Good news #2: You’re a millionaire!!!! (REALLY!)
Good news #3: You still have a functioning brain after 30 years in a coma.
Good news #4: Check out the Internet!
Other news: 1989 was a heck of a year. Poland had elections, Hungary opened its border, the Berlin wall fell, leading to the reunification of Germany a year later. Lots of political stuff has happened, and now Donald Trump is President (it’s a long story).
OK, so Sears went bankrupt, but you got money. Suppose you bought your shares in Sears at the beginning of 1989. Back then, Sears Stock (“S”) was trading at about $16 per share. So you would have had about 6,200 shares of stock.
But Sears stock paid dividends. From 1989 through 1992, it paid $0.50 in dividends per quarter. That’s $12,400 in dividends per year. That’s $49,600 in dividends through the end of 1992.
During 1993, 1994 and the first half of 1995, Sears paid $0.40 in dividends per quarter. So you got another $24,800 in dividends.
From the second half of 1995 through 2005, Sears paid $0.23 in dividends per quarter. So this would have netted you another $57,040 in dividends.
So you would have over $125,000 in your investment in dividends, plus whatever interest those funds earned until 2019, assuming they were not taken because your account was inactive.
But wait, there’s more!
In 1994, Sears spun off Allstate. Each Sears shareholder received 0.93 shares of Allstate for each share of Sears. So you got about 5,766 shares of Allstate. In July 1998, Allstate shares split 2:1. So now you would have had 11,532 shares in Allstate.
Allstate is currently trading at $94 per share. That’s $1,084,008!
This doesn’t even count the dividends you would have gotten on Allstate!
We’re not done yet!
In 1993, Sears spun off Dean Witter. Each shareholder of Sears got 0.39031 shares of Dean Witter for each share of Sears. You got about 2,400 shares of Dean Witter.
Dean Witter then acquired Morgan Stanley, with the new company taking the Morgan Stanley name. In 2000, it split 2:1, so you now have 4,800 shares of Morgan Stanley. Morgan Stanley is now trading at $41.19. So you have $197,712 in Morgan Stanley. Plus whatever dividends you would have earned on this!
MORE MORE MORE!
Sears was acquired by KMart, and the resulting company was Sears Holding. Sears shareholders got one half of a share, or $50, in the new company called Sears Holding. Who knows what your broker chose while you were asleep. Had they chosen $50, you would have wound up with $310,000 more. Had you taken Sears Holdings you would have wound up with, well, let’s not talk about that.
Still, all in all, you did ok!
Sources:
Sears Dividends Reference Page - Historical Stock Info
SEARS FORMALLY SPINS OFF ALLSTATE (Chicago Tribune)
.
"
Good news #2: You’re a millionaire!!!! (REALLY!)
Good news #3: You still have a functioning brain after 30 years in a coma.
Good news #4: Check out the Internet!
Other news: 1989 was a heck of a year. Poland had elections, Hungary opened its border, the Berlin wall fell, leading to the reunification of Germany a year later. Lots of political stuff has happened, and now Donald Trump is President (it’s a long story).
OK, so Sears went bankrupt, but you got money. Suppose you bought your shares in Sears at the beginning of 1989. Back then, Sears Stock (“S”) was trading at about $16 per share. So you would have had about 6,200 shares of stock.
But Sears stock paid dividends. From 1989 through 1992, it paid $0.50 in dividends per quarter. That’s $12,400 in dividends per year. That’s $49,600 in dividends through the end of 1992.
During 1993, 1994 and the first half of 1995, Sears paid $0.40 in dividends per quarter. So you got another $24,800 in dividends.
From the second half of 1995 through 2005, Sears paid $0.23 in dividends per quarter. So this would have netted you another $57,040 in dividends.
So you would have over $125,000 in your investment in dividends, plus whatever interest those funds earned until 2019, assuming they were not taken because your account was inactive.
But wait, there’s more!
In 1994, Sears spun off Allstate. Each Sears shareholder received 0.93 shares of Allstate for each share of Sears. So you got about 5,766 shares of Allstate. In July 1998, Allstate shares split 2:1. So now you would have had 11,532 shares in Allstate.
Allstate is currently trading at $94 per share. That’s $1,084,008!
This doesn’t even count the dividends you would have gotten on Allstate!
We’re not done yet!
In 1993, Sears spun off Dean Witter. Each shareholder of Sears got 0.39031 shares of Dean Witter for each share of Sears. You got about 2,400 shares of Dean Witter.
Dean Witter then acquired Morgan Stanley, with the new company taking the Morgan Stanley name. In 2000, it split 2:1, so you now have 4,800 shares of Morgan Stanley. Morgan Stanley is now trading at $41.19. So you have $197,712 in Morgan Stanley. Plus whatever dividends you would have earned on this!
MORE MORE MORE!
Sears was acquired by KMart, and the resulting company was Sears Holding. Sears shareholders got one half of a share, or $50, in the new company called Sears Holding. Who knows what your broker chose while you were asleep. Had they chosen $50, you would have wound up with $310,000 more. Had you taken Sears Holdings you would have wound up with, well, let’s not talk about that.
Still, all in all, you did ok!
Sources:
Sears Dividends Reference Page - Historical Stock Info
SEARS FORMALLY SPINS OFF ALLSTATE (Chicago Tribune)
.
