Alibaba Group Holding Ltd Dividends
The next dividend date for Alibaba Group Holding Ltd 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 Alibaba Group Holding Ltd (BABA)
More About Alibaba Group Holding Ltd
Alibaba is China’s largest online marketplace and a technology company that diversifies into various market segments. Their eCommerce platform opens the gates of Chinese manufacturing to the world by offering access to numerous vendors around the country. Their competitive prices draw in close to a billion users each year, setting itself as a global leader in eCommerce.
Owning Alibaba Group Holding Ltd Stock on the Dividend Date
If you own Alibaba Group Holding Ltd stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of Alibaba Group Holding Ltd stock should go down by the amount of the dividend (in addition to any other pressures that market forces have on the price of Alibaba Group Holding Ltd stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying Alibaba Group Holding Ltd stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the Alibaba Group Holding Ltd dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning Alibaba Group Holding Ltd 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 Alibaba Group Holding Ltd stock price from the dividend is already baked into Alibaba Group Holding Ltd option prices.
That means the prices of call options that overlap the Alibaba Group Holding Ltd ex-dividend date typically go down in the period leading up to the ex-dividend date.
The prices of put options that overlap the Alibaba Group Holding Ltd ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of Alibaba Group Holding Ltd call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of Alibaba Group Holding Ltd put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More Alibaba Group Holding Ltd Dividends
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