Dividends are an important component of the total return on investment, particularly in sectors like real estate investment trusts (REITs), utilities and financial services, where Manhattan Bridge Capital operates. The market often reacts to dividend announcements, where a stable or increasing dividend can attract investors, thus potentially increasing demand for the stock. Conversely, a decrease or omission of a dividend can signal trouble, often leading to a decline in stock price.
It is also worth noting the ex-dividend date, which is the cutoff date to be eligible for the dividend payment. In this case, the ex-dividend date would typically be one business day before the record date. This can lead to short-term trading strategies around the ex-dividend date, as some investors might purchase the stock just to receive the dividend and sell it shortly after.
