How dividend affects stock and option prices

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:
https://www.investarindia.com/blog/dividend-affects-stock-option-prices/

 

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.

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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.

 

Thank you. I will keep that in mind.

 

Hello, It's easier to pinpoint Cash dividends affect option prices through their effect on the underlying stock price. Because the stock price is expected to drop by the amount of the dividend on the ex-dividend date, high cash dividends imply lower call premiums and higher put premiums.
Thank you