Probably a dumb question but one that has puzzled me for a while. It’s about dividend. As far as I understand when cash dividend is paid the share price is adjusted down by the amount of dividend paid. So what this means (it seems to me anyway) is that you are gaining dividend in the form of cash but loosing out in terms of the share price. Assuming everything else being equal for a moment, is the net gain from the dividend payment netural?
I do understand that in many cases the ‘gap’ created by the dividend adjustment do close hence dividends would net gain.