Does stock price go down after dividend?

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Gloria Padberg asked a question: Does stock price go down after dividend?
Asked By: Gloria Padberg
Date created: Sun, May 16, 2021 6:06 PM
Date updated: Sun, Oct 9, 2022 6:27 AM

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Top best answers to the question «Does stock price go down after dividend»

After the declaration of a stock dividend, the stock's price often increases. However, because a stock dividend increases the number of shares outstanding while the value of the company remains stable, it dilutes the book value per common share, and the stock price is reduced accordingly.

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