Benzinga | Feb 3, 2021 10:17AM EST

Analyzing Magellan Midstream's Ex-Dividend Date

Magellan Midstream (NYSE:MMP) declared a dividend payable on February 12, 2021 to its shareholders as of January 26, 2021. It was also announced that shareholders of Magellan Midstream's stock as of February 5, 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 Magellan Midstream is set for February 4, 2021. The company's current dividend payout sits at $1.03, equating to a dividend yield of 9.07% 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.

Magellan Midstream's Dividend History

Over the past year, Magellan Midstream has seen its dividend payouts remain the same and its yields climb upward overall. Last year on February 6, 2020 the company's payout sat at $1.03, which has returned to its value today. Magellan Midstream's dividend yield last year was 6.38%, which has since grown by 2.69%.

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 Magellan Midstream's previous dividends.