Benzinga | Jan 29, 2021 10:17AM EST

Understanding 1st Source's Ex-Dividend Date

On January 21, 2021, 1st Source (NASDAQ:SRCE) declared a dividend payable on February 12, 2021 to its shareholders. 1st Source also announced that shareholders on the company's books on or before February 2, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. 1st Source, which has a current dividend per share of $0.29, has an ex-dividend date scheduled for February 1, 2021. That equates to a dividend yield of 2.72% at current price levels.

The Significance Of 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. Most ex-dividend dates operate on a quarterly basis.

1st Source's Dividend History

Over the past year, 1st Source has seen its dividend payouts remain the same and its yields climb upward overall. Last year on February 3, 2020 the company's payout sat at $0.29, which has returned to its value today. 1st Source's dividend yield last year was 2.31%, which has since grown by 0.41%.

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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