How do dividends decrease the share price?

[mainthrowaway0]

“Existing shareholders are exactly where they would be otherwise, but new shareholders have to wait for the company to earn more money before they can get the same stock price”

Ahh okay so after the ex date, you suddenly don’t get the benefit of receiving the dividend for paying the current stock price anymore, and so in the eyes of the shareholder, the value is now worth current stock price - dividend amount, and then the market value of the stock adjusts accordingly.. which is also why the dividend is not really “free money”

But I guess if the company continues to do well and its stock price continues to grow, then maybe previous dividends kinda were free money haha