To earn smartly, investors must first understand how dividends affect stock prices and play a vital role in the market.
βοΈStock Price
β’ Analysts use models to identify right price
β’ Higher the dividends, better the share price
βοΈEx-dividend price
β’ Prices rise during dividend announcements
β’ After distribution, prices plummet immediately
βοΈThe Growth
β’ Invests a month before the dividend is announced
β’ Traders then sell shares & earn good profits
βοΈThe Yield
β’ Invests only in companies with good dividend
β’ Calculates the dividend based on its share price
βοΈThe Change
β’ Dividend declaration shows a huge impact
β’ Prices fluctuate based on the declaration made
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Posted On: 13 Dec 2022 3:09 PM