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DIVIDENDS

SSHAWN4y ago
Why calculating dividend yield why is ex dividend price considered and not cum dividend price considered?
John MoffatJohn MoffatTutor4y ago#1
Because if you buy a share when it is cum div you will then receive the current dividend and so the net investment is smaller (and is the ex div price).
SSHAWN4y ago#2
so basically you choose ex div since it is smaller?
John MoffatJohn MoffatTutor4y ago#3
Not simply because it is smaller, but because that is the net amount being invested.
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