Originally Posted by: Crossover521 
Is there a way to chart the price after accounting for dividends? I am thinking of a series much like "Adjusted Close" in yahoo finance.
We do not have an adjusted close field, although manual data adjustments can be made. However, there are some rules for how dividends get handled that you may find informative. With Cash Dividends, the market price adjusts for the dividend payment, no manual adjustment is made to the data. With Stock Dividends, adjustments are made.
Regarding Cash Dividends:
No adjustment is made to historical pricing, dividends or earnings data after payment of a
cash dividend.
This applies to all except Chile, Argentina, Brazil, Peru, Turkey, Venezuela and Vietnam.
Reasons
Dividends do not have a dilutive effect on the number of shares in issue, and have no effect on future earnings potential.
Regarding Stock Dividends:
A stock dividend payment, however, would carry an adjustment to historical data, as it represents an increase in the number of shares in issue.
CASH DIVIDENDS
A cash dividend is a distribution by a corporation to its stockholders on a pro rata (equal)
basis.
A cash dividend is a pro rata distribution of cash to stockholders.
For a cash dividend to occur, a corporation must have:
1 - retained earnings
2 - adequate cash
3 - declared dividends
STOCK DIVIDENDS
A stock dividend is a pro rata distribution of the corporation’s own stock to stockholders.
A stock dividend results in a decrease in retained earnings and an increase in paid-in
capital.
Corporations usually issue stock dividends for one or more of the following reasons:
1 - To satisfy stockholders’ dividend expectations without spending cash.
2 - To increase the marketability of its stock by increasing the number of shares outstanding and thereby decreasing the market price per share.
3 - To emphasize that a portion of stockholders’ equity has been permanently reinvested in the business and therefore is unavailable for cash dividends.
Edited by user Thursday, December 3, 2020 4:59:06 PM(UTC)
| Reason: Not specified
