Hi all - I'm new to the investment game and trying to get my head around some investment basics – apologies if this is a dumb question… So, I’m trying to understand the relationship between yield and share price. For simplicities sake let’s forget about franking credits and any other tax considerations. Company X is currently yielding 6%. If I buy 1 share in company X at $100, and assuming forecast yield is the same as actual yield when dividends are paid out, then over the course of 1 financial year I would expect a total dividend of $6 – am I correct so far? BUT, does that mean that when I receive my $6 dividend, the share price will generally reduce by an equal amount – i.e. -$6? So my total actual return (assuming no change in share price other than reduction on dividend payout) would be 0? If this is the case, how does the dividend value ‘accrue’ in the share price over the course of a financial year? Or do I have this completely wrong? I know that many things can impact a prospective dividend, but basically what I’m trying to understand is if I purchase a stock yielding say 7% based on the purchase price at the start of the financial year, and assuming no other change to the share price during the year that would result in a capital appreciation or depreciation, would my investment increase by 7%, or would the net effect be 0? If anyone can point me in the direction of a book or some online material that can help with the basics that would be great!