With the stock market drop last week, how were dividend stocks effected by this movement?
There is a huge misconception about the stock market in general... the stock market has little to do with any of the companies that have their shares traded at the stock market. The price of a companies stock may go down. The stock price may go up... it may go no-where at all. The price of a companies stock is tied to the performance of the company... it has little to do with the stock market. When the market drops, that action causes some stocks to go down in "perceived value". Not actual value.
The employees are going to continue to come to work, the company is going to continue to function and operate business as usual. The decrease in the stock market we saw just the other day has nothing to do with wether or not the company is going to pay out dividends and continue "business as usual".
To some it all up, The drop in the stock market does not effect the companies willingness to share the profits with their investors.
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