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DIVIDENDS

This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.

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October 12, 2021 at 1:18 pm #637568
shaunak22
Participant
- Topics: 218
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Why calculating dividend yield why is ex dividend price considered and not cum dividend price considered?
October 12, 2021 at 3:51 pm #637579
John Moffat
Keymaster
- Topics: 56
- Replies: 51579
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).
October 12, 2021 at 9:44 pm #637590
shaunak22
Participant
- Topics: 218
- Replies: 41
so basically you choose ex div since it is smaller?
October 13, 2021 at 7:48 am #637603
John Moffat
Keymaster
- Topics: 56
- Replies: 51579
Not simply because it is smaller, but because that is the net amount being invested.
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