Investment Strategies & Instruments
Dividend Investing: The Advantages, and the Arithmetic Most Guides Skip
On the ex-dividend date the share price is marked down by roughly the dividend, so a payout moves your money rather than adding to it — and taxes it on the way. What survives that arithmetic: the signal a payout sends, the behaviour it changes, why a high yield is usually a warning, and why the S&P 500 yields about 1%.