Amount capital dividend liquidating share
In the case of stocks those forces are largely traders working with many variables, only one of which is the dividend payout. I also had a nicely profitable short term Netflix trade, but that’s an outlier.
It’s not that Newton was wrong, it is that other, stronger forces are at work. You might be interested to know that this was due to a focus on high-dividend stocks.
That is real money leaving the company and that lost value is precisely the same as the dividend itself.
However, just like the gravity of an apple is hard to perceive in the shadow of the earth, so too it can be easy to miss the lost value to KO of the paid dividend against the scale of the company itself. This is why traders pay close attention to the ex-dividend date (this is the date that determines who gets the dividend if the stock is being sold. So, what about Dividend Mantra’s Dividend Growth Investing approach?
The directors who sit on a company's board of directors are responsible for determining a company's dividend payout policy; one of the most important decisions they will make.
An intelligent dividend payout policy depends upon several factors, including opportunities for profitable growth, current tax laws, and a host of other considerations.