how do dividends affect a stock s share price 
a stock s share price will change to reflect a dividend payment as an example a company that is trading at 60 per share declares a 2 dividend as the news becomes public the share price may increase by 2 and hit 62 the stock might trade at 63 one business day before the ex dividend date on the ex dividend date it s adjusted by 2 and begins trading at 61 at the start of the trading session on the ex dividend date because anyone buying on the ex dividend date will not receive the dividend 