Because the money of the dividends itself is our own money. So, the money did not increase after the dividend.
Moreover, ** after dividends, ex-rights or ex-dividends are required. Dividends need to be analyzed in two situations:
1. Cash dividends.
If it is a cash dividend, it is also necessary to pay ex-dividends, so that the stock price needs to subtract the amount of dividends, resulting in a decrease in the stock price.
In this case, although there is an extra amount of money in his account, this money is exchanged for the decline in the stock price of the ** held.
For example, before the dividend is 10 yuan shares, if each share is distributed 2 yuan cash dividends, then after the dividend will become 8 yuan shares, if the investor holds 20,000 shares, the market value before the dividend is 2 million yuan, although there is more than 400,000 yuan of cash in the account after the dividend, but the market value becomes 1.6 million yuan.
In this case, the total assets of the investor are still 2 million yuan.
Market value 1.6 million + 400,000 cash = 2 million yuan.
2. Dividends.
If the form of dividends is a share dividend, then the number of shares held by investors will increase in this case. However, there is no fundamental change in the market capitalization, because the dividends also need to be ex-rights. **After the ex-rights, the stock price will decrease in equal proportions.
For example, before the dividend, the dividend is 66 yuan shares, and the standard for dividends is 10 shares for 10 shares, in this case, if the initial holdings are 100 shares, the number of shares held by investors after the dividend is 200 shares.
However, in this case, it is not that the stock price of ** is still 66 yuan, but it has become 33 yuan.
In this way, there is no difference between before and after dividends for investment.