Benzinga | Feb 1, 2021 10:22AM EST

Understanding MetroCity Bankshares's Ex-Dividend Date

MetroCity Bankshares (NASDAQ:MCBS) declared a dividend payable on February 12, 2021 to its shareholders as of January 20, 2021. It was also announced that shareholders of MetroCity Bankshares's stock as of February 3, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. MetroCity Bankshares, whose current dividend payout is $0.1, has an ex-dividend date set at February 2, 2021. The payout equates to a dividend yield of 2.67% at current price levels.

What Are Ex-Dividend Dates?

An ex-dividend date is when a company's shares stop trading with its current dividend payout in preparation for the company to announce a new one. 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.

Understanding MetroCity Bankshares's Dividend History

Over the past year, MetroCity Bankshares has experienced an overall downward trend regarding its dividend payouts and an upward trend regarding its yields. Last year on January 30, 2020 the company's payout was $0.11, which has since decreased by $0.01. MetroCity Bankshares's dividend yield last year was 2.33%, which has since grown by 0.34%.

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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