Benzinga | Nov 6, 2020 10:20AM EST

Ex-Dividend Date Insight: Webster Financial

On October 27, 2020, Webster Financial (NYSE: WBS) declared a dividend payable on November 24, 2020 to its shareholders. Webster Financial also announced that shareholders on the company's books on or before November 10, 2020 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Webster Financial has an ex-dividend date set for for November 9, 2020. The company's current dividend payout is $0.4, which equates to a dividend yield of 4.87% at current price levels.

The Significance Of An Ex-Dividend Date

An ex-dividend date signals when a company's shares cease to trade with its current dividend payout. There is a small intermission period before the company announces a new dividend. 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.

Understanding Webster Financial's Dividend Performance

Over the past year, Webster Financial has seen its dividend payouts remain the same and its yields climb upward overall. Last year on November 8, 2019 the company's payout sat at $0.4, which has returned to its value today. Webster Financial's dividend yield last year was 3.51%, which has since grown by 1.36%.

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.

Click here to find details on Webster Financial's previous dividends.