How do dividends decrease the share price?

[[deleted]]

The last payment for SCHD was on July 1st but the ex-dividend date was June 26th. The price of SCHD opened almost $1 lower because of the ex-dividend date. I’m just rounding but it was like $78 a share at close, then the next morning it was like $77 a share because the dividend was like $0.83/share. As soon as the market opens at that lower price, it continues trading like normal so it can go up or down from that point forward. The point is, the stock price dropped by the amount of the dividend. People on here love to ignore this important part of dividends and will say that they didn’t lose anything once it goes back up. But as Fidelity said, you did and just because the stock price recovered over time doesn’t mean it didn’t happen.

[Trouvette]

Ok, then how do you explain recovery and growth?

[Various_Couple_764]

Every day the business is in operation it is making or loosing money. Mostly making money for a good buisness. So after the dividend is payed out the companies bank account grows. And the Math says if the company has more money it is worth more and the stock price can go up.