How can the price of a stock be affected by its dividend?

View More Stock Market QuestionsPosted 4/12/10 at 2:55pm

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The higher the dividend paid the higher value to the stock holders. This causes the price to rise. If a company does not pay dividends or doesn't very often the only returns you will get is when you sell it. Really there is no value there except that you think other people will buy it, or if you believe that they will start paying dividends one day.

Posted 4/21/10 at 9:13amWas this answer helpful? Yes / No

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