RE:Surge Energy started dividends recently You are a fool who is going on my ignore list now. Your hatefilled posts and baseless accusations have become too much for me.
As to your most recent drivel, I'll say this - Dividends will never support the stock price from falling - UNLESS the dividend amount is larger enough to cause an exceptionally high yield. SGY declared their 42 cent dividend re-instatement on May 5th, I believe, when its stock price closed at $10.53. At that stock price the yield would have been 3.99%. Completely friggin mediocre. Totally plain vanilla average. Right in line with the market-wide average %. Certainly, no big whoop-dee-doo. For that dividend to, all by itself, start supporting the stock price the yield would have to be getting closer to 10% or so, which would mean a stock price in the mid $4s.
On the other hand, if the yield was moderately higher than the average market-wide yield (say 2% higher or so) then, yes, over a period of time that stock would eventually be brought back in line with said average. It's just another indicator of an undervalued condition, much like a low price-to-book metric or low p/e metric, etc. Many stocks can stay, irrationally, undervalued for YEARS! Eventually things work though. Always.
pennydredful wrote: But the stock has gone down since . So dividends are no panasea .