Benzinga | Jan 29, 2021 10:16AM EST

Ex-Dividend Date Insight: FIRST TRUST SENIOR

FIRST TRUST SENIOR (NYSE:FIV) declared a dividend payable on February 16, 2021 to its shareholders as of January 20, 2021. It was also announced that shareholders of FIRST TRUST SENIOR's stock as of February 2, 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 FIRST TRUST SENIOR is set for February 1, 2021. The company's current dividend payout sits at $0.01, equating to a dividend yield of 1.67% 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.

FIRST TRUST SENIOR's Dividend Payouts And Yields

Over the past year, FIRST TRUST SENIOR has seen its dividend payouts remain the same and its yields trend downward. Last year on October 1, 2020 the company's payout sat at $0.02, which has returned to its value today. FIRST TRUST SENIOR's dividend yield last year was 2.48%, which has since decreased by 0.81%.

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 TRUST SENIOR's previous dividends.