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Cockroaches Ltd shares just announced that they would pay a dividend this year after having not...

Cockroaches Ltd shares just announced that they would pay a dividend this year after having not paid a dividend for many years. The share price did not change. Explain why this may occur.

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Cockroaches Ltd shares just announced that they would pay a dividend this year after having not paid a dividend for many years. The share price did not change. Explain why this may occur.

Usually the share price increaes on the announcement of the dividend after not having not paid a dividend for many years. But, the stock price is dependent on many other factors.

One of the reasons for the share price not to change is the lack of confidence in the investors about the future performance of the company to increase dividend or keep paying dividends.

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