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Do stocks fall after paying dividends?

Asked by Anonymous Sep 02, 2026 0 views 1 answers
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Answered Sep 02, 2026

Yes, on the morning of the ex-dividend date, a stock's market price typically opens lower by an amount roughly equal to the dividend payout value. Because the company is distributing a portion of its cash reserves or retained earnings directly to shareholders, the theoretical net worth and per-share value of the enterprise drop by that exact distributed cash margin.

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