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Mike Piche
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There are a few reason why the stock price may decrease after a divident is paid:

  • Some people holding the stock may have been waiting to get the dividend before they sold the stock.
  • Stocks that pay dividends are making the choice to reward the stockholder with cash instead of reinvesting profits into the company to grow its business. When a pile of money gets paid to stockholders, that's a signal that the long term growth potential is decreased, at least a little bit.
Mike Piche
  • 1.9k
  • 1
  • 14
  • 10