Applied Digital Corporation Dividends
The next dividend date for Applied Digital Corporation 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 Applied Digital Corporation (APLD)
More About Applied Digital Corporation
Applied Digital Corporation designs, develops, and operates digital infrastructure solutions and cloud services high-performance computing (HPC) and artificial intelligence industries in North America. It operates through three segments: Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The company offers infrastructure services to crypto mining customers; and GPU computing solutions for critical workloads related to AI, machine learning, and other HPC tasks. It also engages in the designing, constructing, and managing of data centers to support HPC applications. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
Owning Applied Digital Corporation Stock on the Dividend Date
If you own Applied Digital Corporation stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of Applied Digital Corporation stock should go down by the amount of the dividend (in addition to any other pressures that market forces have on the price of Applied Digital Corporation stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying Applied Digital Corporation stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the Applied Digital Corporation dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning Applied Digital Corporation 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 Applied Digital Corporation stock price from the dividend is already baked into Applied Digital Corporation option prices.
That means the prices of call options that overlap the Applied Digital Corporation ex-dividend date typically go down in the period leading up to the ex-dividend date.
The prices of put options that overlap the Applied Digital Corporation ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of Applied Digital Corporation call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of Applied Digital Corporation put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More Applied Digital Corporation Dividends
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