Dividends do not affect the average price or quantity of your holdings. Here's how they impact you:
No Change to Holdings: The number of shares and average price stay the same after a dividend is declared.
Cash Benefit: The dividend is credited as cash to the bank account linked to your Demat account on Groww. It’s extra income in addition to any capital gains.
Stock Price Adjustment: While your holdings remain unchanged, the stock price may adjust after the dividend is paid (called "ex-dividend").