RE: Dividend Question13 May 2021 12:30
Folio, not sure what you mean here.
I think I'm on fairly solid ground here. I'm ignoring ex dividend shares etc but the simple numbers make sense.
E.g.
Company with 100 shares at £1 a share, discovers the biggest mcguffin in the world and sells it for £200. Company is now worth £3 a share. Company says "dividend of £1 a share", pays it out. Company now worth £200 so £2 a share.
You get a rerate to the new value, dividend pays, price drops by dividend amount.
Yes, in the real world, it'll be more complex, but that is the simple numbers behind it.