Query on Ex-Dividend Date price discount

I am a bit confused on below paragraph from the following link of Dividend Section “Five Corporate Actions and Its Impact on Stock Prices – Varsity by Zerodha

When the stock goes ex-dividend, usually the stock drops to the extent of dividends paid. For example, if ITC (trading at Rs. 335) has declared a dividend of Rs.5. On ex-date, the stock price will drop to the extent of dividend paid, and as in this case, the price of ITC will drop down to Rs.330. The reason for this price drop is because the amount paid out no longer belongs to the company.

from the above example, the ITC should open on an ex-dividend date with Rs.330. is my understanding is right. if Yes, then, I have checked few Dividend stocks on their Ex-Dividend Date, the price is not discounted with the Dividend amount.

How to check whether the dividend amount is discounted from stock price? ( I understand it’s a process and there will not be any miss. asking for my clarity)

There is a typing error in your question - the stock price should go down to 330 instead of 300 at ex- dividend date. But, in reality stock price movement is dependent on several factors (positive or negative) and thus the price might actually rise at the ex - dividend date as well. This link might help you understand that better :grinning:

1 Like

Edited my post with the correct price.
Thank you for the clarification.

Your welcome :+1:.