![]() ![]() ![]() Even something simple like how many down/up closes a stock has had or moving averages are changed by this. This apparent down close has repercussions on technical indicators by changing their values. If on the day dividend adjustment, had AT&T closed flat at $34 then the stock price would be adjusted to $33.56, looking like it closed down 1.3%. For example, AT&T has a $.46 dividend per share and is trading around $34. When a stock issues a dividend, the price of the close on that day only is reduced by the dividend amount. The data is only adjusted for stock splits and special dividends. ![]() On most platforms, stock data is not typically adjusted for regular dividends. Since Norgate Data makes it easy to have two databases, one with the dividend adjustments and one without, it was time to run tests and determine how much of a difference it makes. In my post, “How much does not having survivorship free data change test results?” I covered other data issues but not this one. My answer has been “without dividend adjusted data, your results may be understated.” It has always bothered me that I could not give a better answer. ![]() Or someone will comment they do not want to use Norgate Data because they do not adjust for dividends (it does but it is not enabled by default). To dividend adjust or not to dividend adjust? That is the question.Ībout once a month, someone asks how important it is to have dividend adjusted data. ![]()
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