The DJIA is a price-weighted index tracking of 30 companies chosen by the Dow Jones Company. It takes the current share price of these 30 stocks and divides by a specific number called the divisor. The index is not affected by price changes caused by stock splits and dividend payments, which is due to the divisor being changed in response to stock splits and dividend payments.
How does the divisor change for a dividend payment? Is there a specific equation to take into account the amount of dividend sent out? I have only seen information on how the divisor changes for stock splits.