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Online Share Trading

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Impact of dividends on share prices

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asylum
Super Contributor
Hi Simon. Would just like to know what impact dividends have on share prices. Is it better getting in into a share after the dividends have been payed out as that should see the share price fall or am i off the mark? I own a few mittal shares and would like to purchase additional mittal shares. I know that they are paying out dividends next month. Should i get in before the Div or After? Also if you get in after the dividend is there normally a long period of time that expires before a share reaches its previous high.I know this is not something that can be easily answered as the market is different for every sector, but as anyone maybe done an anlysis of this? Thanks in advance
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SimonPB
Valued Contributor
Hi asylum, there is no short or easy answer here as different stocks act different but also depending on what the market is doing overall. Generally it's going to depend on you time horizon. Short term maybe after div, longer term makes no real difference.

An a strong market will catch the div back fairly fast wile a weak market will take a lot longer.
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