Benzinga | Nov 11, 2020 10:19AM EST

Ex-Dividend Date Insight: Westinghouse Air Brake

On October 15, 2020, Westinghouse Air Brake (NYSE: WAB) announced shareholders can expect to receive a dividend payable on November 27, 2020. The stock will then go ex-dividend 1 business day(s) before the record date. Westinghouse Air Brake, whose current dividend payout is $0.12, has an ex-dividend date set at November 12, 2020. The payout equates to a dividend yield of 0.75% at current price levels.

The Significance Of An Ex-Dividend Date

An ex-dividend date is when a company's shares stop trading with its current dividend payout in preparation for the company to announce a new one. 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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

Understanding Westinghouse Air Brake's Dividend History

Over the past year, Westinghouse Air Brake has seen its dividend payouts remain the same and its yields climb upward overall. Last year on November 14, 2019 the company's payout sat at $0.12, which has returned to its value today. Westinghouse Air Brake's dividend yield last year was 0.68%, which has since grown by 0.07%.

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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