Will the dividend paid per share also decrease by 1/7?
For the sake of the math, I'll use a 5:1 split.
Day 0: Company trading for $1/share with 100 outstanding shares -- Market cap = $100. They are offering $0.05/share dividends -- Total dividend = $5
Day 1: Stock split at 5:1
Day 2: Company trading for $0.20/share with 500 outstanding shares -- Market cap = $100. They are offering $0.01/share dividends -- Total dividend = $5
http://www.streetinsider.com/Dividend+Hike/Apple,+Inc.+(AAPL...