Stock Splits 2025 Australia: Impact, Examples, and What to Watch

Stock splits are making waves across the ASX in 2025, with several high-profile companies moving to make their shares more affordable and boost market activity. But what exactly is a stock split, and how does it affect your investments? Whether you’re a seasoned trader or just starting out, understanding the ins and outs of stock splits is crucial for navigating the ever-changing Australian share market.

What Is a Stock Split and Why Do Companies Do It?

A stock split is when a company increases its number of shares by dividing existing ones, lowering the share price but leaving the overall value of your holding unchanged. For example, in a 2-for-1 split, every share you own becomes two, but each is worth half as much. Your total investment value remains the same, but the shares become more accessible to everyday investors.

• Accessibility: Lower share prices can attract new retail investors who might have been priced out previously.
• Liquidity: More shares in circulation often means more trading activity and tighter spreads.
• Psychological effect: Investors sometimes perceive lower share prices as ‘better value’, even though the fundamentals haven’t changed.

In 2025, ASX-listed giants like CSL and Afterpay (now Block, Inc.) have considered or implemented splits in response to surging share prices and growing demand from retail investors. This trend is also fuelled by the rise of online brokers and micro-investing platforms, which make it easier for Australians to buy into blue-chip stocks.

2025 Stock Split Trends on the ASX

This year, the ASX has seen a notable uptick in stock split activity. Several factors are driving this:

• Record-high share prices: As companies like Macquarie Group and CSL reached all-time highs, their boards looked to splits as a way to enhance market participation.
• Retail investor boom: The post-pandemic surge in retail investing has continued into 2025, with platforms like CommSec Pocket and Superhero lowering the barriers to entry.
• Policy clarity: ASIC’s 2024 guidance update clarified the disclosure requirements around stock splits, making the process smoother for both companies and investors.

Example: In March 2025, CSL announced a 3-for-1 stock split, bringing its share price down from around $300 to just under $100. While the company’s market cap remained unchanged, trading volumes spiked and more retail investors jumped in.

How Stock Splits Affect Your Investments

For most investors, a stock split is a neutral event: you own more shares at a lower price, but the total value stays the same. However, splits can sometimes lead to increased interest and short-term price volatility as new investors pile in.

• No impact on fundamentals: A split doesn’t change a company’s profits, dividends, or growth outlook.
• Potential for increased liquidity: More shares available can make it easier to buy or sell without moving the price as much.
• Watch for post-split volatility: Short-term swings are common as the market digests the split, but these usually settle quickly.

Some investors use stock splits as a signal that a company is confident about its future. However, experts warn against buying purely because of a split – focus instead on the company’s fundamentals and long-term prospects.

Key Takeaways for 2025

• Stock splits are increasingly common on the ASX as companies respond to high prices and a booming retail market.
• While splits make shares more accessible, they don’t change the underlying value of your investment.
• Stay informed about upcoming splits and remember to assess companies based on their business, not just their share structure.