Broadcom Inc Dividends
The next dividend date for Broadcom 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 Broadcom Inc (AVGO)
More About Broadcom Inc
Broadcom’s roots run deep in the communication technology space. With Bell and AT&T as its predecessors, the company has a rich heritage in technology. As a semiconductor leader, AVGO develops, manufactures, and supplies a wide range of microchips and infrastructure software products globally. With a focus on innovation and strategic acquisitions, Broadcom could be positioning itself for long-term success.
Owning Broadcom Inc Stock on the Dividend Date
If you own Broadcom Inc stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of Broadcom 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 Broadcom Inc stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying Broadcom Inc stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the Broadcom Inc dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning Broadcom 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 Broadcom Inc stock price from the dividend is already baked into Broadcom Inc option prices.
That means the prices of call options that overlap the Broadcom 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 Broadcom Inc ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of Broadcom Inc call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of Broadcom Inc put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More Broadcom Inc Dividends
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