Dividend announcement impact on stock price
The impact of a special dividend on a company’s stock price is that the company’s stock will fall by approximately the same amount of the special dividend on the day after its ex-dividend date. For this reason, it’s typically not a sound investment strategy to buy shares of a company in order to capture the extra dividend. Having said that, dividends can affect stock prices and valuations in several ways. For example, if a company raises its dividend higher than the market expects, it could be taken as a positive