Hi all sifus,
Most of the time, when a company pays good dividen, the company stocks tends to be well liked and stable.
However, i have a burning question in my mind all these years, hope some of u could shed some light.
If u notice when a stock last trade at RM10 before ex-date
Dividen at ex-date = RM0.5 (before minus 26% tax)
The effective dividen we get per share = RM0.37
However, Opening price on ex-date will be RM9.5 (adjust by minus RM0.5)
Which means that shareholder is actually losing money out of it.
Since price will be adjusted anyway, why bother paying dividen?
i might as well hope the company does not pay me any dividen, coz i only get RM0.37, but i was deducted RM0.5 from my share.
Hope some can explain. Thanks
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