iShares MSCI EAFE ETF Dividends
The next dividend date for iShares MSCI EAFE ETF 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 iShares MSCI EAFE ETF (EFA)
More About iShares MSCI EAFE ETF
The fund generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The index is a free float-adjusted, market capitalization-weighted index designed to measure large- and mid-capitalization equity market performance of developed markets outside of the U.S. and Canada.
Owning iShares MSCI EAFE ETF Stock on the Dividend Date
If you own iShares MSCI EAFE ETF stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of iShares MSCI EAFE ETF stock should go down by the amount of the dividend (in addition to any other pressures that market forces have on the price of iShares MSCI EAFE ETF stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying iShares MSCI EAFE ETF stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the iShares MSCI EAFE ETF dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning iShares MSCI EAFE ETF 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 iShares MSCI EAFE ETF stock price from the dividend is already baked into iShares MSCI EAFE ETF option prices.
That means the prices of call options that overlap the iShares MSCI EAFE ETF ex-dividend date typically go down in the period leading up to the ex-dividend date.
The prices of put options that overlap the iShares MSCI EAFE ETF ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of iShares MSCI EAFE ETF call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of iShares MSCI EAFE ETF put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More iShares MSCI EAFE ETF Dividends
You can contact us any time if you would like to ask questions about iShares MSCI EAFE ETF dividends or anything else related to the stock market.