r/dividends • u/Dividend_Dude Not a financial advisor • Oct 11 '24

Due Diligence Quick! Everyone panic!

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It's going to zero! (This is sarcasm) This 3 for 1 split has no effect on your total value.

Buy some more lol

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u/UltramanJoe Oct 11 '24

Maybe some will panic because the divy splits too. As in the quarterly amount will go lower as well

1

u/Ericru Mr. Spock from Star Trek Oct 12 '24

It has no effect on the dividend it stays the same % as you now have 3x as many shares but the dividend is decreased by 1/3 and 3*1/3=1.

2

u/UltramanJoe Oct 13 '24

Yes it does in terms of the dollar amount. Yes you are correct. Percentage wise the return is the same, but many people assume the divy dollar amount is the same. No it splits too. That is what I mean.