Benzinga | Jan 27, 2021 10:42AM EST

Understanding A.O. Smith's Ex-Dividend Date

On January 15, 2021, A.O. Smith (NYSE:AOS) announced shareholders can expect to receive a dividend payable on February 16, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. The ex-dividend date for A.O. Smith will be on January 28, 2021. The company's current dividend payout is at $0.26. That equates to a dividend yield of 1.81% at current price levels.

The Significance Of Ex-Dividend Dates

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.

Understanding A.O. Smith's Dividend History

Over the past year, A.O. Smith has experienced an overall upward trend regarding its dividend payouts and a downward trend regarding its yields. Last year on January 30, 2020 the company's payout was $0.24, which has since grown by $0.02. A.O. Smith's dividend yield last year was 2.06%, which has since decreased by 0.25%.

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 A.O. Smith's previous dividends.