If on January 3, 2012, a company declares a dividend of $1.50 per share, payable on January 31, 2012, to holders of record on January 19, then the price of the stock should drop by approximately $1.50 on January 17, which is the ex-dividend date.

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When a company declares a dividend, its stock price usually drops by approximately the amount of the dividend on the ex-dividend date, which is two business days before the record date. In this case, the ex-dividend date is January 17, so the stock price should drop by approximately $1.50 on that day.

If on January 3, 2012, a Company Declares a Dividend