Amazon.com Inc Dividends
The next dividend date for Amazon.com Inc 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 Amazon.com Inc (AMZN)
More About Amazon.com Inc
This online marketplace giant needs no introduction. Amazon is one of the most successful businesses of all time and one of the largest companies by market cap in the world with a valuation of over $1 trillion. But its services extend beyond the online marketplace. Offerings like Amazon Web Services are helping the company diversify into various areas and maintain continued growth.
Owning Amazon.com Inc Stock on the Dividend Date
If you own Amazon.com Inc stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of Amazon.com Inc stock should go down by the amount of the dividend (in addition to any other pressures that market forces have on the price of Amazon.com Inc stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying Amazon.com Inc stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the Amazon.com Inc dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning Amazon.com Inc 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 Amazon.com Inc stock price from the dividend is already baked into Amazon.com Inc option prices.
That means the prices of call options that overlap the Amazon.com Inc ex-dividend date typically go down in the period leading up to the ex-dividend date.
The prices of put options that overlap the Amazon.com Inc ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of Amazon.com Inc call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of Amazon.com Inc put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More Amazon.com Inc Dividends
You can contact us any time if you would like to ask questions about Amazon.com Inc dividends or anything else related to the stock market.