Archer-Daniels-Midland Company Dividends
The next dividend date for Archer-Daniels-Midland Company has not yet been scheduled.
What is a Dividend Date
When we talk about a dividend date, we’re referring specifically to the ex-dividend date.
This is the date on which all stockholders will earn a dividend. Technically, a person needs to be the owner of a share of stock as of the night before the ex-dividend date in order to earn the dividend.
The ex-dividend date is different than the date when the dividend is issued. Although you earn a dividend on the ex-dividend date, that dividend is typically not disbursed to your account until several weeks later.
Most brokerages will automatically credit the dividend to your account once it’s issued.
Historical Dividends for Archer-Daniels-Midland Company (ADM)
More About Archer-Daniels-Midland Company
Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds; Carbohydrate Solutions; and Nutrition. The company originates, merchandises, stores, and transports agricultural raw materials, such as oilseeds and soft seeds. It engages in the agricultural commodity and feed product import, export, and distribution; and various structured trade finance activities. In addition, the company offers soybean meal and oil; vegetable and salad oils and protein meals; ingredients for the food, feed, energy, and industrial customers; margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. Further, it provides peanuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose; alcohol, and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal; distillers' grains; corn germ; and citric acids. Additionally, the company provides proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, and botanical extracts; and other specialty food and feed ingredients; edible beans; formula feeds, and animal health and nutrition products; and contract and private label pet treats and food products. It also offers futures commission merchant; commodity brokerage services; cash margins and securities pledged to commodity exchange clearinghouse; and cash pledged as security under certain insurance arrangements. The company was founded in 1902 and is headquartered in Chicago, Illinois.
Owning Archer-Daniels-Midland Company Stock on the Dividend Date
If you own Archer-Daniels-Midland Company stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of Archer-Daniels-Midland Company stock should go down by the amount of the dividend (in addition to any other pressures that market forces have on the price of Archer-Daniels-Midland Company stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying Archer-Daniels-Midland Company stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the Archer-Daniels-Midland Company dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning Archer-Daniels-Midland Company Options on the Dividend Date
Unlike the stock price, which will normally have an abrupt decrease by the amount of the dividend on the ex-dividend date, option prices typically do not reflect the same phenomenon.
The reason is that in the time leading up to the ex-dividend date, that projected drop in Archer-Daniels-Midland Company stock price from the dividend is already baked into Archer-Daniels-Midland Company option prices.
That means the prices of call options that overlap the Archer-Daniels-Midland Company ex-dividend date typically go down in the period leading up to the ex-dividend date.
The prices of put options that overlap the Archer-Daniels-Midland Company ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of Archer-Daniels-Midland Company call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of Archer-Daniels-Midland Company put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More Archer-Daniels-Midland Company Dividends
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