Joseph Wang Financial - The dividend discount prices, theoretically, the day you pay
Every time a company pays a dividend out there is a company money, and in theory reduces firm value by that amount. Suppose a company has a share capital consists of 1,000 shares and each share is trading at 20 euros at the close of the session the day before they will pay the dividend. The capitalization of the company is 20,000 euros (20 x 1,000).The balance of the company consists of a number of factories, machinery, etc. and 5,000 euros in cash