DraftKings Inc Dividends
The next dividend date for DraftKings 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 DraftKings Inc (DKNG)
More About DraftKings Inc
DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting, daily fantasy sports, media, digital lottery courier, media, and other products, as well as retails sportsbooks. The company also offers iGaming, or online casino products, which includes blackjack, roulette, baccarat and slot machines. In addition, the company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. Further, it offers DraftKings marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT on marketplace. The company is headquartered in Boston, Massachusetts.
Owning DraftKings Inc Stock on the Dividend Date
If you own DraftKings Inc stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of DraftKings 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 DraftKings Inc stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying DraftKings Inc stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the DraftKings Inc dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning DraftKings 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 DraftKings Inc stock price from the dividend is already baked into DraftKings Inc option prices.
That means the prices of call options that overlap the DraftKings 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 DraftKings Inc ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of DraftKings Inc call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of DraftKings Inc put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More DraftKings Inc Dividends
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