Benzinga | Jan 28, 2021 10:18AM EST

Understanding Targa Resources's Ex-Dividend Date

Targa Resources (NYSE:TRGP) declared a dividend payable on February 16, 2021 to its shareholders as of January 20, 2021. It was also announced that shareholders of Targa Resources's stock as of February 1, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. The ex-dividend date for Targa Resources will be on January 29, 2021. The company's current dividend payout is at $0.1. That equates to a dividend yield of 1.33% at current price levels.

The Significance Of An Ex-Dividend Date

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

Targa Resources's Dividend Performance

Over the past year, Targa Resources has seen its dividend payouts and yields descend downward overall. Last year on January 30, 2020 the company's payout sat at $0.91, which has since decreased by $0.81. Targa Resources's dividend yield last year was 8.92%, which has since declined by 7.59%.

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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