Disclaimer: im dumb.
When a company pays dividends the stock usally drops the same amount on the x-day. The owners will get the money like 2 weeks after the day the xday.
Lets say a company pays a 4% dividens so the stock drops 4% on the xday.
Wouldnt it make sense to buy it right there because the stock should go up later when the owners gets the dividens and reinvests it? Is this already priced in?
Leave a Reply