telionn t1_jefil2t wrote
Reply to comment by PixieBaronicsi in ELI5: Doesn’t the drop in a stock price after the ex-dividend day cancel out the dividend gain for an investor? by 4westofthemoon4
It's important to note that in case 1, the value of the shares only goes up because of the theoretical possibility of dividends (and stock buybacks, and any other similar schemes). If companies had no way of returning cash to investors, stock would have no value.
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