Ignoring general market fluctuations, the stock's price would be expected to drop by the amount of the declared dividend on the ex dividend date.

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When a company declares a dividend, the stock's price is expected to drop by an amount equal to the dividend on the ex dividend date. This happens because investors who purchase the stock on or after the ex dividend date are not entitled to the current dividend payment. So, to reflect the reduction in the value of the stock due to the dividend payment, the stock's price typically drops by a corresponding amount on the ex dividend date.

Ignoring General Market Fluctuations, the Stock's Price Would Be Expected