Humana Inc Dividends
The next dividend date for Humana 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 Humana Inc (HUM)
More About Humana Inc
Humana Inc. provides medical and specialty insurance products in the United States. It operates in two segments, Insurance and CenterWell. It offers medical care and supplemental benefit plans to individuals. The company also has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, it provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; and military services, such as TRICARE T2017 East Region contract. Further, the company engages in the operation of pharmacy benefit manager business; operates pharmacies and senior focused primary care centers; and offers home solutions services, such as home health, hospice, and other services to its health plan members, as well as to third parties. It sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.
Owning Humana Inc Stock on the Dividend Date
If you own Humana Inc stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of Humana 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 Humana Inc stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying Humana Inc stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the Humana Inc dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning Humana 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 Humana Inc stock price from the dividend is already baked into Humana Inc option prices.
That means the prices of call options that overlap the Humana 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 Humana Inc ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of Humana Inc call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of Humana Inc put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More Humana Inc Dividends
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