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Indiana | I’m a bit late seeing this but thought it would still be worthwhile to point out that it’s generally not a great idea to “buy the dividend” all else being equal the stock price should adjust down to account for the loss to the company that pays the dividend. Lot of moving parts to establish a stock price obviously, but again, all things being equal the dividend payment is accounted for and the payment of the dividend should be reflected in the price after paid. This is not as big of a problem in a tax advantaged account but in a taxable account it can hurt because the dividend is taxable. That is one of the benefits of the stock buyback vs dividend payment. It’s a more tax efficient way to return $ to shareholders.
This pricing phenomenon is most evident in a mutual fund which prices at NAV each day after close rather than continuously during market hours. A fund will price adjust down after a dividend payment due to the cash being distributed to shareholders. | |
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Altria Dividend
