Think about it.. The value of stock in a company is equal to the total value of the company. Let's say the company has a total net worth of $50B. the share price will reflect that value. If the company were to pay out, say, $2B in dividends, the company has lost $2B in cash assets and its net value is now $48B. Stock prices will adjust to reflect that new lower company value.
Think about it another way. Let's say you buy shares of a company just in time to receive a $10 per share dividend, but you want to sell it as soon as you receive your dividend, would you expect to get exactly what you paid ?
If yes, then what you want to do is buy only dividend issuing shares just prior to them issuing dividends, hold them til you get the dividend and then sell them.
Sorta like money for nuthin and chicks for free.
But what counts for retirement funds, et al, is what the stock is selling for. It may or may not have any relation to the actual value of the company, as we all know from recent events on Wall Street.
Stock prices will adjust to reflect that new lower company value.
The amount of stock issued and the value of the stock is set on the value of the company at initial offering. After that, the stock value is based on what the market says its value is. BP's stock is an example. They have billions in assets, but their stock is tanking. Why? Because with this spill, people know it is going to have a dark future - at least for some time.