Weird article on Investopedia
I read the following on Investopedia:
When a company wants to issue dividends to its shareholders but doesn’t have excess cash on hand, it may choose to issue a stock dividend. Companies may also choose this option as a means of decreasing the value of existing shares, driving down the price to earnings (P/E) ratio and other important financial metrics.
Isn’t this incorrect? Issuing a stock dividend decreases the price of the shares but doesn’t the EPS decrease as well?
If you're the first out the door, that's not called panicking