Benzinga | Dec 29, 2020 10:19AM EST

Understanding Grupo Aval Acciones's Ex-Dividend Date

Grupo Aval Acciones (NYSE:AVAL) declared a dividend payable on March 9, 2021 to its shareholders as of September 24, 2020. It was also announced that shareholders of Grupo Aval Acciones's stock as of February 26, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Grupo Aval Acciones, which has a current dividend per share of $0.03, has an ex-dividend date scheduled for February 25, 2021. That equates to a dividend yield of 6.77% at current price levels.

The Significance Of Ex-Dividend Dates

Ex-dividend dates signal when company shares cease to trade with their current dividend payouts. There is a small intermission period before companies announce new dividends. Usually, a company's ex-dividend date falls one business day before its record date. Investors should keep this in mind when purchasing stocks because buying them on or after ex-dividend dates does not qualify them to receive the declared payment. Newly declared dividends go to shareholders who have owned that stock before the ex-dividend date. Most ex-dividend dates operate on a quarterly basis.

Grupo Aval Acciones's Dividend Performance

Over the past year, Grupo Aval Acciones has seen its dividend payouts remain the same and its yields climb upward overall. Last year on November 27, 2020 the company's payout sat at $0.03, which has returned to its value today. Grupo Aval Acciones's dividend yield last year was 6.66%, which has since grown by 0.11%.

Companies use dividend yields in different strategic ways. Some companies may opt to not give yields altogether to reinvest in themselves. Other companies may opt to increase or decrease their yield amounts to control how their shares circulate throughout the stock market.

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