Since listing on the stock market in November 1999, United Parcel Service has never had a stock split. As a result, the company has not needed to adjust its dividend payout to reflect this, as indicated by SplitHistory.com
UPS has never undertaken a stock split, and the company has provided no indication as to whether it intends to initiate one as part of its strategy. Rather than taking this approach to adding value to shareholders, the company has indicated within its annual reports that its financial strength gives it the resources to return value in the form of dividends and share repurchases, states UPS Investors.
Much depends on the future performance of UPS shares, as stock splits are more likely to happen when the share price rises to a higher denomination. It is a common method for a company to increase the number of shares outstanding, while maintaining the stock’s total valuation. The rationale is often to make the individual shares more attractive and affordable to smaller investors, according to Nasdaq. Existing shareholders also generally like stock splits because they end up holding more shares without experiencing a dilution of their holding.
An example of a stock split is a "two-for-one" split, which is when the cost of a share originally priced at $100, for example, is adjusted so that the shareholder now has two shares, each valued at $50 a share. The market value of the shareholder’s position remains unchanged, states Nasdaq.