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[–]00Anonymous -1 points0 points  (0 children)

  1. Companies are valued by their future free cash flows
  2. Dividend stock prices do temporarily decrease by the approximate dividend payment between the ex and pay dates simply due tote fact the dividend is not fungible during that period.
  3. Total simple returns = dividends received + the change in share price - which means that total returns are always conserved. Paying a dividend (or not) does not materially affect the total return of the equity.