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If stock price drops by the amount of dividend paid, what is the use of a dividend
You buy stocks for dividends over the long term.  If a share of stock pays $1.00 in dividends every quarter, that's four dollars a year.  If you bought it for $40, it pays out $4 in a year, and it's still worth roughly $40 at the end of the year, you're $4 richer.  People will often invest large amounts of money in stable stocks not planning to sell it, but only collect the dividends which are either re-invested or pulled out as income.