RE: Very quiet9 Oct 2018 07:19
As with all dividend paying companies , the share price will reduce by the amount of dividend being paid on ex - div day,or more. I have found from experience that these companies that pay large dividends are for long term investments only as the share price takes time to recover , if ever. An example is Barratts, this time last year they paid approx 34p/share and fell 40p on ex-divi day, the share price has never recovered from that price drop , they go ex-divi this week for 35p, so another price drop. As my dividends are re- invested I don’t mind the price drop as it means I get more shares for my money and it will increase my pension pot when I decide to start taking the cash.