Comment by barchar
4 months ago
Dividends actually directly lower the stock price. Keep an eye on your portfolio when your holdings go ex-div -- the price falls because it no longer includes that cashflow.
4 months ago
Dividends actually directly lower the stock price. Keep an eye on your portfolio when your holdings go ex-div -- the price falls because it no longer includes that cashflow.
It does not lower it in any long-term sense, because, unless it's a one-time dividend, there's another dividend next quarter, and generally assumed to be continuing payments for the foreseeable future if the company is healthy.
This doesn't sound correct. Giving out an expected dividend lowers a stock price since otherwise one could arbitrage it, but this is evidence that the dividend raised the price when it got priced in