When is Spy's Ex-Dividend Date?

When is Spy's Ex-Dividend Date?

As an investor, it is important to understand the concept of ex-dividend date, especially when investing in dividend-paying stocks such as SPDR S&P 500 ETF Trust (SPY). The ex-dividend date is the date on which a stock trades without its dividend. This means that if you own the stock on or before the ex-dividend date, you will be entitled to receive the dividend payment. On the other hand, if you buy the stock after the ex-dividend date, you will not receive the dividend payment.

What is SPY?

SPDR S&P 500 ETF Trust (SPY) is a popular exchange-traded fund (ETF) that tracks the performance of the S&P 500 index, which is composed of 500 large-cap US stocks. SPY is a great choice for investors who want to gain exposure to the broad US stock market without having to buy individual stocks. Additionally, SPY pays a dividend, which makes it attractive to income-seeking investors.

When is SPY's ex-dividend date?

SPY's ex-dividend date is determined by the ETF'sdividend schedule, which is announced by the ETF's management company. Generally, ETFs like SPY pay dividends on a quarterly basis. For example, SPY's dividend schedule for 2021 is as follows:

Ex-Dividend Date Record Date Payable Date Dividend

March 19, 2021 March 22, 2021 March 29, 2021 $1.133

June 18, 2021 June 21, 2021 June 28, 2021 $1.125

September 17, 2021 September 20, 2021 September 27, 2021 $1.134

December 17, 2021 December 20, 2021 December 27, 2021 $1.186

As you can see from the table, SPY's ex-dividend dates fall on the third Friday of March, June, September, and December. It is important to note that the ex-dividend date is two business days before the record date, which is the date when the ETF's management company determines the shareholders of record who will receive the dividend.

What should investors know about investing in dividend-paying stocks like SPY?

Investing in dividend-paying stocks like SPY can be a great way to generate income and build long-term wealth. However, there are a few things that investors should keep in mind:

1. Dividends are not guaranteed - While SPY has a history of paying dividends, there is no guarantee that it will continue to do so in the future. Economic and market conditions can impact a company's ability to pay dividends.

2. Dividend yields can change - The dividend yield is the amount of dividend paid per share divided by the stock's price. Dividend yields can change as stock prices fluctuate, so it is important to keep an eye on the yield when investing in dividend-paying stocks.

3. Taxes can impact your returns - Dividends are taxed as ordinary income, so it is important to consider the tax implications of investing in dividend-paying stocks. Additionally, if you sell a stock before the ex-dividend date, you will not be entitled to receive the dividend payment, but you may still be subject to taxes on the dividend.

4. Diversification is key - While SPY is a great way to gain exposure to the broad US stock market, it is important to diversify your portfolio across different asset classes and sectors. This can help reduce your overall risk and potentially improve your returns.

In conclusion, SPY's ex-dividend date falls on the third Friday of March, June, September, and December. Understanding the concept of ex-dividend date and the dividend schedule of SPY can help investors make informed decisions about when to buy or sell the ETF. While investing in dividend-paying stocks can be a great way to generate income and build long-term wealth, investors should also be aware of the risks and considerations associated with this type of investment.