Shake Shack Inc Dividends
The next dividend date for Shake Shack 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 Shake Shack Inc (SHAK)
More About Shake Shack Inc
Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offer burgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is based in New York, New York.
Owning Shake Shack Inc Stock on the Dividend Date
If you own Shake Shack Inc stock on the ex-dividend date, then you earn the associated dividend.
Theoretically, the price of Shake Shack 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 Shake Shack Inc stock).
Therefore, it is typically not expected that there is any incremental profit to be gained from buying Shake Shack Inc stock right before the ex-dividend date and then selling it immediately after. It’s not like you get the Shake Shack Inc dividend payout for free just by doing that since there is typically an equivalent commensurate drop in the stock price.
Owning Shake Shack 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 Shake Shack Inc stock price from the dividend is already baked into Shake Shack Inc option prices.
That means the prices of call options that overlap the Shake Shack 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 Shake Shack Inc ex-dividend date typically go up in the period leading up to the ex-dividend date.
Owners of Shake Shack Inc call options do not receive the dividend, even if they own the options on the ex-dividend date. Owners of Shake Shack Inc put options are not responsible to pay the dividend, even if they own the options on the ex-dividend date.
Learning More Shake Shack Inc Dividends
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