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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 t
by barchar 1y 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.
- knollimar 1y agoThis 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
- prewett 1y agoIt 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.