In an efficient market,ignoring taxes and time value,the price of stock should:

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In an efficient market, the stock price should decrease by the amount of the dividend immediately on the ex-dividend date. This is because on the ex-dividend date, investors who buy the stock will not be entitled to receive the upcoming dividend payment, so the stock price should adjust downwards to reflect this. The stock price should not increase when the dividend is declared, as this is simply a decision by the company to distribute a portion of their earnings to shareholders and does not necessarily reflect an increase in the value of the company.

In an Efficient Market,ignoring Taxes and Time Value,the Price of Stock