Cisco Systems Inc Dividends
The next dividend date for Cisco Systems 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 Cisco Systems Inc (CSCO)
More About Cisco Systems Inc
Link up your portfolio to the tech world with this connectivity stock. Cisco is a digital communications technology conglomerate that develops and manufactures networking hardware, software, and other high-technology services and products. The company is trusted for our national security due to its rock-solid reputation, innovation, and reliability.
Owning Cisco Systems Inc Stock on the Dividend Date
If you own Cisco Systems Inc stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of Cisco Systems 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 Cisco Systems Inc stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying Cisco Systems Inc stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the Cisco Systems Inc dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning Cisco Systems 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 Cisco Systems Inc stock price from the dividend is already baked into Cisco Systems Inc option prices.
That means the prices of call options that overlap the Cisco Systems 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 Cisco Systems Inc ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of Cisco Systems Inc call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of Cisco Systems Inc put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More Cisco Systems Inc Dividends
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