How Often Does Activision Pay Dividends?
Activision Blizzard, under the ticker ATVI, typically paid a dividend once a year. Historically, the payment month for Activision Blizzard’s dividend was August. However, it’s important to note that Activision Blizzard no longer pays dividends due to its impending acquisition by Microsoft. This article will delve deeper into the specifics of Activision’s dividend history and address frequently asked questions regarding its dividend policies and the acquisition’s impact on shareholders.
Activision’s Dividend History
Annual Dividend Payout
For many years, Activision Blizzard followed a consistent pattern of distributing dividends to its shareholders annually. The company’s dividend payment was generally scheduled for August, providing investors with a regular source of income from their holdings. This annual payout structure allowed investors to plan for passive income streams around the same time each year, using the company’s dividend calendar.
2023 Special Dividend
In 2023, Activision Blizzard declared a special dividend of $0.99 per share. This particular dividend was payable on August 17, 2023, to stockholders of record on August 2, 2023, with an ex-dividend date of August 1, 2023. This special dividend was notable as it occurred just before the company’s acquisition by Microsoft, and it represented a significant payout to its shareholders. The annual yield on this dividend was reported to be 1.1 percent.
Dividend Payout Ratio
The dividend payout ratio for ATVI varied based on the earnings data used for calculation. Based on the trailing year’s earnings, the payout ratio was 36.26%. Looking at the estimates for the current year, the payout ratio was 26.40%. For next year’s estimates, the dividend payout ratio stood at 25.26%. This illustrates that while the company paid dividends, it also retained a substantial portion of earnings for reinvestment and operational needs.
End of Dividends Due to Acquisition
It’s crucial for investors to understand that with Microsoft’s impending acquisition of Activision Blizzard, the company has ceased paying dividends. Once the merger is complete, ATVI shares will be replaced with the cash payment of $95 per share. This effectively ends the dividend-paying chapter for Activision Blizzard.
Frequently Asked Questions (FAQs) about Activision Dividends
Here are some frequently asked questions to clarify the details surrounding Activision’s dividend policies and the impact of its acquisition by Microsoft.
1. What was the last dividend payment date for ATVI?
The last dividend payment date for Activision Blizzard was August 17, 2023, the payment date of the special dividend.
2. What was the special dividend amount in 2023?
The special dividend amount was $0.99 per share.
3. What is the ex-dividend date for the last dividend?
The ex-dividend date for the last dividend was August 1, 2023. This means that anyone purchasing the stock after that date would not be eligible for that specific dividend payout.
4. What was the record date for the last dividend?
The record date was August 2, 2023. Shareholders who owned ATVI shares by this date were eligible to receive the special dividend.
5. What is the annual dividend yield for ATVI?
The annual yield on the special dividend was 1.1 percent.
6. What is the significance of the Microsoft acquisition regarding ATVI dividends?
The impending acquisition of Activision Blizzard by Microsoft means that ATVI will no longer pay dividends after the merger is finalized. Instead of dividends, shareholders will receive $95 per share in cash.
7. What will ATVI shareholders get as a result of the Microsoft acquisition?
All holders of ATVI will receive $95.00 in exchange for each ATVI share held at the close of trading on October 12, 2023.
8. Why is ATVI stock not trading at the $95 acquisition price?
Activision Blizzard (ATVI) stock trades below the $95 per share acquisition price, currently around $80, because investors perceive a risk that global regulators might block the deal. This perceived risk lowers the stock price.
9. What happens if the Microsoft acquisition does not go through?
If the Microsoft acquisition fails to go through, the future of ATVI is uncertain. The stock price could decline and previous dividend policies may be reevaluated but are not guaranteed to return to the same form as prior to the acquisition plans.
10. What major institutions own ATVI stock?
Some of the largest shareholders of ATVI include Fmr Llc, BlackRock Inc., Vanguard Group Inc, State Street Corp, Capital World Investors, Janus Henderson Group Plc, Lone Pine Capital Llc, Jennison Associates Llc, Morgan Stanley, and Invesco Ltd. These institutional investors hold a significant number of shares.
11. What are the key video game IPs that Microsoft will acquire with Activision Blizzard?
Microsoft’s acquisition of Activision Blizzard gives them access to significant multi-million dollar IPs such as Call of Duty, Overwatch, Diablo, and WarCraft franchises, as well as valuable studios.
12. Did Warren Buffett own Activision stock?
Yes, Warren Buffett’s Berkshire Hathaway owned a significant position in Activision Blizzard, which he started to build up in Q4 2021 and continued to invest in until Q2 2022. However, they sold more than two-thirds of their position more recently.
13. Why was ATVI removed from the Nasdaq 100 index?
Activision (ticker: ATVI) was removed from the Nasdaq 100 stock index on July 17, 2023, and replaced by the digital ad firm, The Trade Desk (TTD). This index adjustment occurred prior to the finalization of the acquisition by Microsoft.
14. What was the purpose of the special dividend paid in August 2023?
The special dividend was a final attempt to distribute value to shareholders before the acquisition. It allowed shareholders to receive an additional payment prior to the final acquisition payout.
15. Should investors hold or sell ATVI stock right now?
The consensus among Wall Street analysts is that investors should “hold” ATVI shares, as the value is expected to be realized upon the completion of the acquisition at $95 per share. The risk of the deal being blocked still exists, so the stock does not currently trade at its acquisition price. The consensus is based on 16 hold ratings and 4 buy ratings issued by analysts.
Conclusion
In summary, Activision Blizzard typically paid dividends annually in August. The last dividend payment was a special dividend of $0.99 per share paid in August 2023. However, due to the impending acquisition by Microsoft, ATVI will no longer pay dividends. Shareholders will receive $95 per share in cash upon the completion of the acquisition, making the previous dividend policies no longer relevant. This information is vital for those who track dividend payments and are looking for passive income streams, especially if they were previously relying on Activision’s annual payouts.