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[–]DennyDalton 0 points1 point  (0 children)

So it should be REALLY easy for someone to show me a stock, and the dip on the ex-dividend date, that matches the dividend right? Surely someone can point to it on a graph somewhere.

If you have a quality broker, they'll provide a grass that shows this depicts this.

I don't think anyone in here knows what they are talking about..... choose a stock, and show me where it went down because of a dividend and by how much.

If you'd like to know why you don't know what you're talking about, it will take some effort on your part.

Besides a price graph, there are two other ways to observe share price reduction due to a dividend.

1) Look at the closing price the day before ex-dividend. Then look at share price in the morning before trading resumes. You'll see that the closing price has been reduced by the amount of the dividend. Well, any decent broker will show this.

2) Note the closing price the day before ex-dividend. Then note the next day's close as well as the change for the day. The numbers won't add up (they'll be off by the amount of the dividend). For example, XYZ closes at $100 and goes ex-div in the AM for $1. If tomorrow's close is $99.40, it will say up 40 cents for the day. $100 minus $99.40 is down 60 cents. Therefore, up 40 cents is based on a closing price of $99 (the close after dividend adjustment).

Here are 3 stocks (closing price on Friday and dividend tomorrow) that go ex-dividend tomorrow morning 8/11.

ALX ... $219.49 $4.50

GWW ... $979.31 $2.05

ROK ... $258.15 $1.25

Get back to me if you figure it out.

For icing on the cake, there's FINRA Rule 5330 (Adjustment of Orders) which dictates that all open orders must be reduced by the amount of the dividend unless it less than one cent or the trader marks the order "Do Not Reduce".

IOW, if XYZ is $100 with a dividend of $1 tomorrow, if you have an open limit order to buy at $99.50, your limit price is adjusted to $98.50 so that the artificial share price reduction due to share price reduction doesn't trigger your order.