Netflix Inc Dividends
The next dividend date for Netflix 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 Netflix Inc (NFLX)
More About Netflix Inc
It wasn’t too long ago that Blockbuster dominated the home video entertainment market and they could’ve still been atop if they would have taken Netflix’s $50 million buy offer. Since then, the streaming giant has grown to not only overtake its brick-and-mortar competitor but also to be one of the largest companies on the market. Delivering more than 27,000% returns to investors since its IPO. NFLX’s market cap is now worth a whopping $150 billion, an arm’s length from the $50 million Blockbuster declined to offer.
Owning Netflix Inc Stock on the Dividend Date
If you own Netflix Inc stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of Netflix 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 Netflix Inc stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying Netflix Inc stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the Netflix Inc dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning Netflix 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 Netflix Inc stock price from the dividend is already baked into Netflix Inc option prices.
That means the prices of call options that overlap the Netflix 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 Netflix Inc ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of Netflix Inc call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of Netflix Inc put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More Netflix Inc Dividends
You can contact us any time if you would like to ask questions about Netflix Inc dividends or anything else related to the stock market.