Benzinga | Jan 26, 2021 10:16AM EST

Understanding First Republic Bank's Ex-Dividend Date

First Republic Bank (NYSE:FRC) declared a dividend payable on February 11, 2021 to its shareholders as of January 14, 2021. It was also announced that shareholders of First Republic Bank's stock as of January 28, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. First Republic Bank has an ex-dividend date set for for January 27, 2021. The company's current dividend payout is $0.2, which equates to a dividend yield of 0.5% at current price levels.

What Is 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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

First Republic Bank's Dividend History

Over the past year, First Republic Bank has experienced an overall upward trend regarding its dividend payouts and a downward trend regarding its yields. Last year on January 29, 2020 the company's payout was $0.19, which has since grown by $0.01. First Republic Bank's dividend yield last year was 0.66%, which has since decreased by 0.16%.

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 First Republic Bank's previous dividends.