Stocks Are Literally More Expensive Than Ever
Stocks are literally more expensive than ever.
The average price for stocks in the
S&P 500 index
was $202.93 at Monday’s close, up from $168.15 on Dec. 31, 2020 and $121.14 on Dec. 31, 2019, according to data from Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
The S&P 500 median stock price is also lofty at $117.94, meaning that half the index has a price above that level. At the end of 2020, the median was $97.76.
The average price is higher than the median because of many super high-price stocks. There are eight companies in S&P 500 whose stocks trade above $1,000.
The proliferation of pricey stocks reflects the bull market and the reluctance of companies to split their shares. Through July, there were four splits during 2021 in the S&P 500 after six in 2020, and down from 12 in 2011. Many companies seem to view an ultrahigh stock price as a status symbol and sign of success.
The high stock prices of companies can deter individual investors from buying them because they are unaffordable or because they would represent too large a percentage of individual portfolios.
(ticker: SCHW) offers more affordable fractional shares in S&P 500 companies through its Stock Slices program.
Interactive Brokers Group
(HOOD) also offer fractional shares, but some full-service brokers like
Here are the companies in the S&P 500 with stock prices above $1,000:
Chipotle Mexican Grill
(MTD), $1,526; and
will drop out of the $1,000 club soon because it recently announced a 3-for-1 stock split.
Write to Andrew Bary at [email protected]