Adjusted Closing Price

The adjusted closing price is a stock's closing price after taking into account any dividends or other distributions that have been paid out since the previous day's close. This is in contrast to the regular closing price, which does not take into account any dividends or distributions.

The adjusted closing price is used to calculate a stock's dividend yield, which is the annual dividend paid out by the company divided by the stock's current price. The dividend yield is a measure of how much a stock pays out in dividends relative to its price, and it is an important factor to consider when evaluating a stock as an investment.

The adjusted closing price is also used to calculate a stock's price-to-earnings ratio (P/E ratio), which is the stock's price divided by its earnings per share. The P/E ratio is a measure of how much investors are willing to pay for a stock relative to its earnings, and it is another important factor to consider when evaluating a stock as an investment.

It is important to note that the adjusted closing price is not the same as the theoretical ex-dividend price. The theoretical ex-dividend price is the price of a stock that would be trading if the dividend had already been paid out. The adjusted closing price is the actual price of the stock, taking into account any dividends or distributions that have been paid out since the previous day's close.

The adjusted closing price is a useful tool for investors who are interested in comparing stocks on a like-for-like basis. By taking into account dividends and distributions, the adjusted closing price provides a more accurate picture of a stock's performance over time.