How dividend affects stock and option prices

Discussion in 'School Of Stock Market' started by Pro2016, Feb 21, 2017.

  1. Pro2016

    Pro2016 New Member

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    I have been following Investar blog and I had come across a very interesting article about "How dividend affects stock and option prices" now what I really want to know that is it true that stock market does effect by these things more or less. Please help if anyone knows you can also read this article I will share the link below:
    http://www.investarindia.com/blog/dividend-affects-stock-option-prices/
     
  2. Niharika

    Niharika New Member

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    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.

    BREAKING DOWN 'Dividend'
    The dividend rate may be quoted in terms of the dollar amount each share receives (dividends per share, or DPS), or It can also be quoted in terms of a percent of the current market price, which is referred to as the dividend yield.

    if you need more information, then join our Webinar and take guidance.
     
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  3. Kritesh Abhishek

    Kritesh Abhishek Member

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    Thanks for sharing the link. Ex-dividend and other concepts are explained nicely in the article. Typically a consistent increasing dividend is a sign of healthy company. However, high dividend alone should never be the reason for investing in any stock.
     
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  4. Pro2016

    Pro2016 New Member

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    Thank you. I will keep that in mind.
     
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