> They're a means of "returning money", but they also pump up the stock price […] Stock prices are also effected by dividends: > Dividends can affect the pric

> They're a means of "returning money", but they also pump up the stock price […] Stock prices are also effected by dividends: > Dividends can affect the price of their underlying stock in a variety of ways. While the dividend history of a given stock plays a general role in its popularity, the declaration and payment of dividends also have a specific and predictable effect on market prices. After the ex-dividend date, the share price of a stock usually drops by the amount of the dividend. * https://www.investopedia.com/articles/investing/091015/how-dividends-affect-stock-prices.asp https://www.investopedia.com/articles/investing/091015/how-d... This has been know since (at least) 1955: * https://www.jstor.org/stable/2976771 https://www.jstor.org/stable/2976771