Arista Networks Dividends
The next dividend date for Arista Networks 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 Arista Networks (ANET)
More About Arista Networks
This cutting-edge computer networking company is all about providing high-performance networking solutions. Arista designs and sells network switches, high-performance computing, high-frequency trading systems, and cloud technology. The company is well positioned to capitalize on the ever-growing need for big data as its products are highly sought after by data centers.
Owning Arista Networks Stock on the Dividend Date
If you own Arista Networks stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of Arista Networks stock should go down by the amount of the dividend (in addition to any other pressures that market forces have on the price of Arista Networks stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying Arista Networks stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the Arista Networks dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning Arista Networks 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 Arista Networks stock price from the dividend is already baked into Arista Networks option prices.
That means the prices of call options that overlap the Arista Networks ex-dividend date typically go down in the period leading up to the ex-dividend date.
The prices of put options that overlap the Arista Networks ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of Arista Networks call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of Arista Networks put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More Arista Networks Dividends
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