Unlikely-Rock-9647 t1_jefefdy wrote
I had this question when I went through my finance class. The way the prof explained it to me is that typically company’s that pay dividends do so in a recurring fashion, so the stock price has it figured in - I.e if the company pays a $1 per share dividend every quarter, they effectively are announcing another $1 dividend immediately after they pay the current one, so the stock never drops.
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